Outsourcing Cost Savings for Companies Less Than Believed - 04/14/06

By Jesse Russell

Outsourcing may not have the benefits previously touted by advocates. A new study by outsourcing advisory firm TPI says that after governance costs, professional fees and severance pay savings are on average around 15 percent. The new information flies in the face of previous estimates that outsourcing could save companies upwards of 60 percent in costs.