Tuesday, 29 May 2007

A case for outsourcing (and its slippery slope)

I think there is a case for outsourcing software development in a software development company: when you have so much work in a temporary basis that you can do it yourself. I think I can't strength temporary enough: if it isn't temporary, you are outsourcing your supposedly main value-creation activity, and getting yourself in a problem (read the previous posts once again).
However, as stated in the title, there is a slippery slope. You may presume that it is temporary, and suddenly, it becomes a permanent assignment. The best people to do the job are the ones who are already doing it, so you keep outsourcing to them. VoilĂ , you are outsourcing a permanent position, depending on your contractor, etc.
How often this slippery slope happens? Only 90% of succesful outsourcings; if it is succesful, you don't want to change, do you?
On the bright side, if your outsourcing failed miserably, as they usually do, you don't have to worry about this
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1 comment:

Outsourcing Expert said...

outsourcing software development is the double edged sword that proves to be beneficial both for the takers and the providers as it has enabled the takers to go for the A grade IT services at a competitive rate.