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5 Reasons Outsourcing Deals Fail
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| Written by John McCormick |
| The CIO Executive Briefing blog recently had the opportunity to listen to Mark Halloran, chief information officer at Medco Health Solutions, make a presentation at the Columbia University CIO Institute, a three-day training academy for IT executives looking to move up to the next level. It’s run with the help of Evanta, a company that produces CIO events.
Halloran, hitting on the fact that it’s hard to develop and retain talent, stated the simple fact that many companies over the years have turned to outsourcers to handle various tasks.
But, he noted, many of these arrangements fail.
Why?
These are Halloran’s top five reasons:
- Poorly written contracts.
- Unrealized cost savings.
- Unexpected management expenses.
- Unexpected contract costs.
- Unclear performance targets.
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