Outsourcing’s business value has long centered on labor arbitrage. While outsourcing partnerships have become more strategic, getting costs down remains a significant draw of the sourcing model. But outsourcing costs have been driving higher for months. A chief factor in this is an unprecedented talent shortage.
“It’s hard to get people, and it’s hard to retain them,” says Amy Fong, Partner in Everest Group’s Sourcing and Vendor Management practice.