How should companies approach outsourcing in this economy?

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Bean counters want to cut costs.

I started out in IT back in '89. There was a big rush to outsource back then too. It took a few years, but then management realized that the quality of the work that was being done offshore, in a word, well.. it sucked. The short-term bottom line improved, while the long-term effect was bad. The code was delivered to 'spec', with all of the outputs matching the inputs, but it was not maintainable. The term 'disposable code' was coined.

Over the past few years, the current crop of managers are starting to figure out what their predecessors did years ago: Outsourcing doesn't save money in the long run.

In fact, we may be in for another 'boom' as these near-sighted companies rush to re-tool the BSC (Bangalore Spaghetti Code) systems that, while delivered to original specs, can't be maintained in an cost-effective manner.

With IP theft rampant in undeveloped countries, any perceived competitive advantage is lost the moment the competition decides to outsource too. The 'trade secret' doctrine is a foreign concept, as is customer 'service'.

Now that the (seasoned) bean counters won't let management outsource complex software projects, they will try to cut costs elsewhere - like hardware and software upgrades. More to the point, not upgrading hardware and eliminating software licenses. If you're an IT/IS Director, the writing is on the wall - Linux and Open Source will be a big part of your life. You'll either learn it, or will be replaced by someone who has.

Posted by: User07734   Posted on: 12/01/08 You are currently: a Guest | Members login | Terms of Use

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