Said CIO probably got a huge bonus for the cost savings and will have a golden parachute on the way out. And yes, it was absolutely the Clorox company that shot themselves in the foot to save a few short-term dollars.
Genuine question: how do folks actually end up estimating the savings in outsourcing? Is it as straightforward as “it will cost $20 a month to do it in house but my friend Jimmy says his company will do it for $15”? Or are there standardized things that also get taken into account like costs to migrate, to have a liaison for the subcontractor, likelihood that subcontractor’s prices will increase over time, changes to customer satisfaction, etc?