| Aramark illustrates some of the benefits of | | | | signed a reciprocal outsourcing deal in which EDS was |
| outsourcing, but not all organizations have experienced | | | | to supply IT services to WorldCom and EDS was to |
| the same. When organizations outsource, they must | | | | act as a reseller for WorldCom (the sum of which |
| deal with the uncertainty of costs involved and the | | | | was to exceed $12 billion over an eleven year period). |
| availability of outsourcing providers. Then they must | | | | July 2002, WorldCom filed for bankruptcy (the biggest |
| face a possible loss of control within their company | | | | in US history), and the EDS share price plummeted and |
| and their employeesâ concerns regarding job | | | | they suffered a $210 million loss. Some might say the |
| security. Finally, most organizations stress over the | | | | outsourcing deal wasnât all that bad because, |
| possible difficulty reversing their decision at a later date | | | | although EDS suffered a huge loss initially, what |
| and the biggest fear of all: the risk of failure (Engle, | | | | remains of their deal with WorldCom, Inc., generated |
| 2002). | | | | approximately $160-175 million per quarter in 2002. |
| Take the case of EDS and WorldCom, Inc., for | | | | However, in late 2002, EDS agreed to pay WorldCom |
| example. In October 1999, EDS and WorldCom, Inc. | | | | $187 million (Bierce & Kenerson, n. d.). |