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Losing Out by Aiming Too Low: The Transformational Power of Outsourcing

Deloitte Insights podcast

Companies that outsource and offshore their services and labor are on a metaphorical diet.

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businessperson thinkingWhen you’re on a diet, you can get so obsessed about every pound you gain or lose that you can forget the reason you went on a diet in the first place: to look and feel better. Companies that outsource and offshore their services and labor are on a metaphorical diet. By focusing narrowly on cost reduction, they can lose sight of the other important benefits outsourcing can offer. When aligned with a company’s overall business strategy, outsourcing can actually be transformational — a catalyst for change that can improve performance and give companies a leg up on their competitors.


  • Companies often only take cost savings into account when they make their outsourcing and offshoring deals. But as long as they end up saving money, what’s the problem? (1:39)
  • How can a Risk Intelligent approach help minimize the risks and maximize the rewards at every stage of the outsourcing lifecycle? (10:25)
  • Companies use a variety of measures to manage contract compliance after a deal is completed. What kinds of measures should they implement to make certain they actually get what they pay for? (21:26)
  • In some cases boards and senior management can be held accountable for a third party’s malfeasance. How can companies minimize this risk? (24:00)

Dr. Hobart Harris, senior manager, Outsourcing Advisory Services, Deloitte Consulting LLP
David Hodgson, partner, Audit and Enterprise Risk Services, Deloitte & Touche LLP

Related Content:
Podcast Transcript: Losing Out by Aiming Too Low - The Transformation Power of Outsourcing
Paper: Why Settle for Less? Deloitte Consulting 2008 Outsourcing Report
Paper: The Risk Intelligent Approach to Outsourcing and Offshoring
Resources: Outsourcing
Resources: The Risk Intelligent Enterprise

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