D.Kim Noon, J G Tech
One way to avoid the difficulties of integration is to create a joint-venture company with the outsourcer. Thus, a company can swap its assets for a share of the profits.Yet joint ventures bring potential troubles, and companies should be careful not to lose sight of the original rationale for outsourcing: to gain cost efficiencies and quality of service in an area that for some reason could not be carried out entirely in-house. The complexities and costs of a joint-venture initiative should not be underestimated.
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