Study: UK offshoring tide to rise

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Pod IT Departments

Noted that 48% of respondents believe that customers are more satisfied as a result of outsourcing.
There are only two possible explanations:
- executive staff has relocated to planet Mungo and need to be rescued by Flash Gordon or
- their prior efforts were so poor that customers reacted violently. Offshored operations are more out of reach.

More significantly, the article notes that companies are now developing a strategy of creating mirror IT departments where wages are cheaper.

So much for the idea of buying expertise. There's an echo of past failures in assuring a consistent quality of staff by greater control.

So much also for the idea that some functions like testing that require little imagination or oversight or control will be the core uses of offshoring. Now it's revealed as simply expertise for less.

That means companies are growing IT Departments in pods, waiting for them to mature and replace the real people.
Said in sympathy with the real people, and not intended to insult those who are using the opportunities available.

Quoting:
Aitchison continued: ?As India is the most mature offshore location, it is a good indicator of how trends are likely to develop worldwide. There is already substantial anecdotal evidence that companies offshoring to China and Central and Eastern Europe are eschewing local service providers in favor of captives. The build-operate-transfer model is also coming into vogue, particularly in IT outsourcing, with companies using third parties to set up a development team, manage it and finally transfer it, essentially to create a new offshore IT department.?

Posted by: Anton Philidor   Posted on: 08/11/05 You are currently: a Guest | Members login | Terms of Use

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