Users blinded by vendor promises

In the race to win outsourcing contracts vendors make big promises which fuel the unrealistic expectations of clients, a leading IT consultant warned this week.

The bidding sales pitch only ignites the poor decisions sometimes made by companies that blindly outsource to solve complex in-house problems without understanding it is a different way of doing business, the managing director of Business Catalyst International, Zia Qureshi, told Computerworld this week.

He said there is more to outsourcing then saving money; it meets the "need for speed" challenge that modern organisations face.

"The strategic benefits of outsourcing have far more to do with speed and innovation than saving money; it's a different way of doing business and at the end of the day it still has to be a good commercial decision," Qureshi said.

On the bidding side, he said sales teams are sometimes forced to make big promises to win tenders and the technical staff are then charged with delivering "the undeliverable".

Case studies and research on "e-sourcing" and other issues will be presented at the Australian session of the Outsourcing World Summit in Sydney from July 24 to 25.

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