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Outsourcing Toolkit

Story: IT cynicism fuels outsourcing failure

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Posted by: Arthur B. (Monday 17 October 2005, 9:30 PM)

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Usually the motivation to outsource is fuelled by a total lack of understanding of what IT is really about (=communication; as in: can you justify the reason for your existense). Thus ending up paying so much more for so much less because if you don't really understand the business you're outsourcing you'll end up getting hurt one way or another because you will be taken advantage of. And if you do really understand the business you're outsourcing you'll often find that outsourcing costs more.

In short: bad communication leads to mutual distrust which leads to bad decisions.

And just to spice up the conversation: one might say that best results are achieved by not outsourcing the department but rather the manager of that department as long as the new manager has been made clear that outsourcing is not an option. After all, the fault is within (internal) (business) communications and that's a manager's fault.

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Featured Talkback

In association with Intel
Software development for instance can be off shored with a perceived reduction in development costs but the resulting code is rarely of good quality and there is much greater expense in reworking and support over the life of software developed in this way. As a consultant who has to deal with off shoring on daily basis I very often see no savings at all over the lifetime of a software product, and in some cases actually see projects costing a fortune to rework.

By: pround

Read full story:
Offshoring behind UK tech-labour divide