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KLAS Publishes Outsourcing Report

September 9, 2008
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A recent report published by KLAS (Orem, Utah) reviews the IT outsourcing space by measuring outsourcer performance and providing insight into the experiences of the outsourced organizations.

According to the KLAS report, 54 healthcare organizations have either discontinued outsourcing or changed outsourcers. Of these organizations, 76 percent have ceased outsourcing by either bringing everything in-house or reducing to less than 50 percent ITO, while the other 24 percent have changed outsourcers, says the company. In addition, the report indicates that 50 percent of respondents said that expectations not met by the outsourcer were clearly defined in the contract.

Major reasons for discontinuing outsourcing or changing to a different outsourcer include the outsourcer not delivering as expected, higher-than-expected costs, a lack of control, objectives not being aligned, and a poor cultural fit, according to the report.

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