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Exit BarriersExit BarriersOutsourcing leads to limited commitment of internal resources to a process, function, and or infrastructure. The risk is that the business does not have the capacity to perform the function, leaving the firm at the mercy of the service provider. If the outsourcing effort fails, then the company will be forced to find another service provider, or rebuild the competency internally. Fixing the problem then requires unraveling the outsourcing relationship. This, in turn, may cause a disturbance in day-to-day operation of the business. The result will be increased costs from productivity loss and from transitions to new providers or internal capability. Going back to our call center example, it is not simple to turn off the switch on customer service capabilities. Where will the company find the trained staff to service your customers? How would it acquire technology to enable the operation? Can it deploy the business processes to effectively service your customers? What will the impact be to customer retention and sales? 159
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