Recovering from failure

One thought floating around in ITToolBox, an IT community where I blog, is that not only are firms unprepared for the transformation that outsourcing brings, they also don't have a sound strategy to transfer failed outsourced operations back in-house. While much has been said on the former, recovering from a failed outsourcing deal is a topic that has received much lesser attention in the business press. Will dwell on this more and post later. Due diligence is an answer but I think we need more on what's an efficient response that mitigates the adverse impact of a failed outsourcing deal on customer value and firm competitiveness.