Managers afraid of losing control on operations
Source: Cinco Días - Special Outsourcing
From: Spain

Jesús Portal, Managing Director of the Arthur D. Little Madrid office, explains three relevant barriers for processes outsourcing. First, Processes' leadership is highlighted as one of the most important issues, especially in those industries (such as financial services) where innovation is considered a competitive advantage. Secondly, changes in labour conditions due to the outsourcing process can become an important obstacle especially when unions have significant negotiation power. Finally, customer relationship quality can be negatively affected when activities are outsourced.