Discover the Hidden Costs of Outsourcing
Avoid surprises. Uncover, measure and mitigate hidden costs.

Info-Tech Research Group

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Introduction
IT leaders report that hidden costs in outsourcing add an average of 25% to the price of the engagement. Understand the hidden costs of outsourcing and take steps to mitigate them.
This Research Is Designed For: This Research Will Help You:

 Business and IT leaders seeking to minimize the unanticipated costs of outsourcing.

 Predict the magnitude of the hidden costs of outsourcing to get a better sense of the total cost picture.

 CIOs and other IT leaders assessing the costs of an impending outsourcing project.

 Manage your outsourcing engagement to reduce hidden costs and increase your net benefit.

 IT leaders selecting a vendor for an outsourcing engagement.

 IT leaders responsible for managing outsourcing engagements.

 Decrease hidden costs both for contracts that are already signed, as well as contracts that are up for review or renewal.

 Both cloud-based and traditional outsourcing arrangements (Info-Tech considers cloud computing a form of outsourcing).

Info-Tech Research Group

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Executive Summary
Info-Tech research shows that there are seven types of costs that IT leaders fail to anticipate at least 20% of the time. The seven types fit into four higher-level cost categories. Info-Tech recommends strategies for avoiding each hidden cost.
Costs related to transitioning into the engagement: adapting to standards and training costs

1. Adapting to submissions standards: Define the process improvements you will need to work with each potential vendor. 2. Training costs for vendor staff: Reduce training costs by keeping the same vendor staff on all your projects.
Fee-related costs: Fees for additional services (that you thought were included)

3. Carefully