" Companies that outsource customer-service functions to reduce costs may risk reducing their client list as well, Gartner Inc. warned today.

In fact, the Stamford, Conn.-based research company predicted that through 2007, some 80% of organizations that outsource customer-service projects to cut costs will fail. This is because outsourced centers often have high staff-attrition rates of up to 80%, and many companies neglect to manage their outsourced operations, according to Gartner." - via Computerworld