Fergie's Tech Blog

Diebold Dumps Deloitte Outsourcing Contract

Michael Cooney writes in NetworkWorld:

Maybe it's not exactly life imitating art, but it's as close as you can come in the outsourcing world. Diebold this week dumped its outsourcing contract with Deloitte Consulting to bring those IT functions back in house.

The ironic part was that in April 2005, Deloitte issued results of a study that found few organizations had realized the benefits they expected and many were bringing outsourced projects back in-house.

In fact, the survey of 25 large organizations with a combined $50 billion in outsourcing contracts found that 70% have had negative experiences with outsourcing projects and are now taking a more cautious approach. One in four companies has brought outsourced functions back in-house and nearly half have failed to see the cost savings they anticipated as a result of outsourcing.

posted by Fergie @ 5/18/2006 09:46:00 AM