Expense of initial migration. The best method of mitigating the concern of high upfront expenses is through a transparent, closely aligned partnership. The two parties can work together to construct a business case that satisfies both sides; for example, initial expenses can be minimized in exchange for a multiyear commitment that enables the outsourcer to make the necessary investments on behalf of its client.
Fear of losing control. Loss of control is best tackled in a similar manner with internal departments. Strict policies and procedures can be implemented to ensure satisfactory compliance. Another way of looking at it is that the separation of duties through an outsourcing partner allows for increased, rather than diminished, control.
Intellectual property issues. In cases where intellectual property is a concern, specific clauses can be written into the contract to ensure protection. Clearly defined audit procedures that adhere to compliance can be set up prior to the outsourced relationship commencing. Other legal resources include nondisclosure and noncompete agreements, patents and copyrights.Also, the
ROI of outsourcing hasn't been proved.
On the contrary, the ROI component of outsourcing has been shown time and time again. In fact, the greatest arbiter, the marketplace, seems to give outsourcing a resounding thumbs up. Beyond reducing head count and employee overhead, additional benefits such as faster time to market and improved quality of the finished product can achieve an ROI of over 400% in some cases.
