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This note is in response to Should You Outsource?

Wednesday, December 21, 2011
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Peter,

I read your article in HRE re outsourcing. After 14 years in this domain, I must agree with you: Companies STILL are looking only at cost reductions/avoidance and not looking at risk management.

Having held all three roles -- provider, client, and third-party transition consultant -- I have found in my helping companies look at the possibility of outsourcing (HRO/BPO/ITO/RPO) that I have had to hold their feet to the fire relative to answering questions, such as you raised, regarding risk, offshoring vs. nearshoring vs. onshoring, corporate goal alignment (e.g., not outsourcing if the company is going through or about to go through M&As or on a course for huge growth in the market).

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The support is simply not there in certain outsource providers, so better to maintain control  and keep it in-house, even if temporarily.

I think your article is spot on regarding real-time concerns and the lack of senior management consideration of them. Thanks for sharing.

K. Michael Janas

Raleigh, N.C. 

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