Confronted with the uncertainty of dealing with third-party service providers, more IT firms are modifying the terms of their outsourcing agreements to make them shorter and more narrowly focused, or else cancelling their contracts altogether and bringing outsourced functions back into the company fold, experts say. According to a report from Pace Harmon, "Many outsourcing deals are failing to meet expectations from an overall service delivery value perspective." Among the issues are escalating costs tied to quality control and a failure among some outsourcers to stay current on important technological trends.

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