Claims of 60% savings through outsourcing are massively exaggerated according to a study by TPI, a leading sourcing advisory firm. TPI's study examined outsourcing contracts awarded between 2003 and 2005 and found that savings net of severance pay, professional fees and governance costs averaged 15%. The savings ranged between 39% at the top end and 10% at the bottom. 15% was also the average level of savings anticipated when contracts were first let.
Outsourcing Saves 15%
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