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McKinsey on Global Outsourcing

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It ain’t so bad as we think. McKinsey Global put out a new study basically stating that the ability of organizations to outsource is slower than we think. The core operations that are being outsourced are usually simply done. Most organizations have difficulty piecing out processes and can’t outsource.

“Moving tasks to faraway sites isn’t simple. According to McKinsey’s study,
many business processes are difficult to separate into discrete chunks that can
be sent away. Many insurance companies use information technology systems that
have been cobbled together over time and would be difficult to manage remotely.
Managers can be unwilling or unprepared to work overseas. And sometimes the
tasks that can be sent offshore are too small to make the move worthwhile. “

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