Half of outsourcing projects fail

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Gartner shies away from truth ...

The reason that outsourcing fails is that the service company lies through their teeth to get the deal, and the CIO deludes himself into believing that he'll get the moon for $99/person.

But the Gartner business is selling reports to CIO's, and they are not going to sell much if they call CIOs self-delusional idiots, so they waffle and say it's just miscommunication.

Our company outsourced most IT operations in 2000. The CIO got a huge bonus, because he negotiated a rock-bottom price. But every one of his staff told him that the contract was full of holes, that there was no way the contractor could make money on the deal, and that we were going to get blindsided by change orders and extra charges. He ignored every bit of the feedback.

The contract is now in renegotiation, and we were charged about 3X the original rate per user last year, because of change orders and "extraordinary requests". Quality of service is a joke, and all technology refresh activity was frozen in 2001. Our internal website was last updated in May. It's just disgraceful.

In reality, I can't blame the outsourcing companies, because the CIOs and the executive management teams are truly the ones responsible for the shambles. But things are never going to change unless they realize how much productivity is lost due to poor IT support.

PS: we almost lost a $35M engineering deal because we couldn't get drawings transferred to the ONE PC in our area that has updated plotter drivers. It would have been hilarious except that losing the deal would have gotten me laid off

Posted by: terry flores   Posted on: 11/22/03 You are currently: a Guest | Members login | Terms of Use

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