Primary reasons behind failures of outsourcing arrangements

Prepared by: Outsourcing Digest
Content by: Joe Valentine
Images used are under the license CC0 Public Domain

Primary reasons behind failures of outsourcing arrangements

• Communication gaps
• Unrealistic expectations on the part of the client
• Failure to reach a win-win situation
• Over promising and under delivering by the vendor
• Inadequate or incorrect criteria for vendor selection
• Lack of expertise on the part of vendor
• Cultural issues
• Attrition at the vendor's end
• Scope creep and change of specifications by the client
• Financial issues at the client's end
• Insufficient or inadequate service level agreements and contracts or lack of implementation of contracts
• Lack of clarity on contract interpretation
• Lack of building relationships

Disclaimer: Joe is a licensed attorney. However, none of this is to be construed as legal advice and no attorney client relationship is created under this note. Please consult a licensed competent attorney for specific advice relating to your situation.