The hidden costs of outsourcing: A case study

Abstract

Outsourcing is a very popular and powerful solution that enables companies to focus on their core competences, as well as to gain flexibility and increase time to market. However, the most common expectation from outsourcing is decreasing costs. Companies that expect outsourcing to decrease their costs in the short and middle term may find themselves disappointed. This article explains where hidden costs could occur, and why they occur.