In-plant Closings Unwise
In his new blog, Ray Chambers goes over some recent shop closings and concludes that they simply don't make sense.
"These institutions are planning to shut down their printing plants even though they have not seen proposals from potential outsource vendors," he criticizes. "They assume that the commercial alternative will solve the problem, but they have no idea what the proposals will look like or what the cost structure of the proposals will be."
His research, he says, finds that cutting costs is usually one of the top stated goals for outsourcing a support service like printing. "But I have yet to find anyone that can actually document savings from doing so. In fact…there is emerging research that indicates just the opposite: Outsourcing support services may actually increase costs."
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