In Outsourcing, It Often Doesn't Win to Be the Lowest Price

Overview

Evaluating outsourcing alternatives can be difficult, especially when looking at the results of the sourcing evaluation against corporate priorities. For example, how does a person defend any decision other than selecting the lowest cost sourcing alternative when the organization must lower costs? Experience shows that corporate executives frequently select a service provider that has not offered the lowest price. They conclude that the lowest cost alternative is not always the best one; here are some considerations before selecting the lowest cost alternative.