CIO - Researchers at the University of Tennessee have studied a variety of outsourcing deals-from IT and back-office work to manufacturing and logistics-and identified the most common mistakes organizations make when partnering with an external provider.
The research reveals that outsourcing customers commit a variety of sins, and the most pervasive missteps can be traced to one simple fact: You get what you pay for, says UT lead researcher and supply chain consultant Kate Vitasek. Or more accurately, in the context of outsourcing, you get what you contract for.
"One of the common mistakes companies make is that their business model and the outsourcing contract are not aligned," Vitasek says. "Economist Steven Levitt states it best-one of the most powerful laws of the universe is the law of unintended consequences. And a key reason for unintended consequences is that people do what they are paid to do."
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