Comparing the Cost of In-House Service Delivery to Outsourcing

Comparing the Cost of In-House Service Delivery to Outsourcing is available only to Strategic Outsourcing & Vendor Management members. For information on membership, please contact us

Accurate comparison of the cost of in-house-delivery with the cost of delivery in outsourcing construct requires significant prudence, given multiple hidden costs and estimation/apportionment errors. This accelerator by Everest Group is designed to support stakeholders in evaluating the relative cost of in-house delivery (co-located in the headquarters or shared services center) versus outsourced delivery to a third-party service provider/vendor. The excel-based accelerator presents a comprehensive checklist of the 20+ cost components covering key categories such as compensation, non-compensation, and other costs. The cost components together constitute an all-inclusive picture of the financial attractiveness of the in-house versus outsourced construct. Additionally, this accelerator includes perspectives on key challenges associated with accounting of these cost components and highlights related implications for stakeholders.