However, this solution increases the costs, as the delegated managers have to be paid extra for having been sent away from home; also, the company has to insure accommodations for them. Nevertheless, the economies made through outsourcing should more than cover the expenses registered with the delegated managers.
Other issues brought about by outsourcing are business confidentiality, diminished and slow communications or hidden costs. In order to solve these problems, the outsourcer has to implement highly selective criteria, he has to know his partner extremely well and he has to hire judiciary consultants to go over the contracts, all time consuming and cost increasing activities.
Bibliography
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Johann Kunz, Five Steps to Outsourcing Success, it Web, the Technology News Site, March 22, 2002 http://www.itweb.co.za/sections/columnists/in2outsourcing/kunz020322.asp?a=COL&S=Columnists&T=Columnist&O=a, last accessed on September 10, 2007
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