outsourcing parts of the IT function overseas may not experience any real
savings or cost benefits, a leading IT organisation has warned.
Association of Technology Staffing Companies (ATSCo) said many offshoring
projects fail to save money because of the huge set-up costs and training
to ATSCo huge initial investment followed by years of fine tuning means that
few companies achieve the predicted savings.
cheaper wages (Indian staff are paid £20 an hour compared to £100 in the UK)
the hidden costs for companies include legal fees, poor productivity and the
expensive transitional period.
also have the redundancy and retraining costs for the staff left behind in the