In the first wave of outsourcing, companies saw that the contract organization provided more or less equivalent results at substantially reduced cost.
What they failed to realize is what they outsourced were their bottom tier workers, the unproductive people. They got excited by the reduced cost with minimal reduction in effectiveness.
When they try to outsource their better talent that’s where they failed to recognize good talent is costly everywhere. You might save some salary but it’s offset by lots of other things from time shift to organizational culture.
What they failed to realize is what they outsourced were their bottom tier workers, the unproductive people. They got excited by the reduced cost with minimal reduction in effectiveness.
When they try to outsource their better talent that’s where they failed to recognize good talent is costly everywhere. You might save some salary but it’s offset by lots of other things from time shift to organizational culture.