What are the “hidden costs” of outsourcing?
The total amount of an outsourcing contract does not accurately represent the amount of money and other resources a company will spend when it sends IT services out to a third party. Depending on what is outsourced and to whom, studies show that an organization will end up spending 10 percent above that figure to set up the deal and manage it over the long haul. That figure goes up exponentially anywhere from 15 to 65 percent when the work is sent offshore (see The Hidden Costs of Offshore Outsourcing) and the costs of travel and difficulties of aligning different cultures are added to the mix.
With outside consultants, extra tasks mean extra expense. Even when the client and vendor agree to a fixed fee, the vendor can charge for work not outlined in the original contract. In order to calculate the expenses approximately, chech out this article https://diceus.com/need-know-consider-developer-cost/
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