
Hidden costs, high staff turnover and poor cross-cultural communications are <A HREF="http://news.zdnet.com/2100-9589_22-5757832.html?tag=zdnn.alert">the key causes of offshore outsourcing failures,</A> according to new research from analyst house Gartner. The analyst report predicts global spending on offshore outsourcing services will top $50 billion by 2007 but it warns too many companies are rushing into deals on the promise of unrealistic cost savings. The biggest mistake that is common to all offshore outsourcing failures is to base the business case solely on reduced labor costs.