Lawsuits, recriminations, millions squandered on failed projects—and outsourcing is supposed to be a good thing for businesses? It's true that many companies benefit from turning over technology management, customer service, and back-office functions to third parties, and the outsourcing business is booming. But the stampede to outsource over the past few years has trampled more than one company. In the past six months alone, Sprint Nextel and Diebold have scrapped or renegotiated big outsourcing engagements. The growing list of deals that have backfired is raising fears in CIO offices and corporate boardrooms that outsourcing can be a high-risk, caveat emptor practice.
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