Outsourcing dissastisfaction on the rise
A study by Chicago-based management consulting firm DiamondCluster International has shown that companies who make use of outsourced services are showing even more signs of discontent with the offshored services. This has resulted prematurely terminated contracts and sifting for whatever value can be salvaged from the outsourcing contract.
A surprising trend is shown by these same companies though, as a number of these same companies have indicated plans of increasing the level of outsourcing over the next 12 months.
Dissatisfied companies among the respondents weighed in at 51% of the respondents – double of its original rate. In sharp contrast, satisfied customers dwindled to 62%, down from its original 79%.
2005 holds much promise for China as the upcoming outsourcing hub. This may come as a surprise as it was only last year that a paltry 6% of the respondents showed any inclination of offshoring to China.
While China is enjoying the sudden surge of interest in it, Israel and Russia now find themselves out of the top outsourcing destination list.
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