The Truth About the Failure Rate of Outsourcing

Bookkeeping Services in Baltimore. While outsourcing is a vital, multi-billion dollar industry that many successful companies rely on, the failure rate for outsourced projects and relationships is surprisingly high.

According to various industry studies and reports:

Project Failure: Between 25% and 50% of all outsourced projects either fail outright or significantly underperform, failing to meet the client's expectations or initial financial objectives.

Relationship Failure: For long-term contracts, the risk increases over time. Some analyses indicate that 20% to 25% of outsourcing relationships fail within the first two years, and nearly 50% fail within five years.