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According to the Gartner Group, 70% of outsourcing engagements fail and 90% do not meet their financial goals.
The question you should be asking yourself is “Why?” You created an excellent request for proposal (RFP), assembled a well-rounded team to assist with the process, chose a vendor that has a good reputation and negotiated what you believe is a strong contract. However at the end of the first year, you only saved a fraction of what you projected. Well, you are not alone ' welcome to the 90%.
What happened? Assuming your benchmarks and projections were correct, chances are the following happened:
Fortunately, there is a foolproof way to avoid falling into the 90% of the outsourcing engagements that fail to meet their financial goals or the failure of rolling-out any significant contract.
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