Outsourcing Current Topics

While multi-tower outsourcing engagements – in which a range of functions such as F&A, HR, IT and contact center are bundled into one contract awarded to a single provider – may seem an effective way to quickly reduce costs due to economies of scale and presumed truncated solutioning phases, the reality is often quite the opposite. Think back to post-September 11 when cost reduction, just like today, was an outsourcing buyer's primary driver. Then consider the multi-tower deals struck during this timeframe – large utility and insurance company buyers top the list – all of which resulted in missed expectations.