Can Your Organization Use an Outsourcing Strategy that Works?
Nothing strikes fear in the heart of IT folks like the word “outsourcing.” To add to this fear, I point you to a new threat, as reported on by CIO.com. It appears that a UK-based company has created robots that can handle simple business and IT functions. How far this will go is anyone’s guess.
The subject of outsourcing is important no matter where you are located in the world. Here in the US, this is a major political issue with the topic of moving jobs overseas seeming to crop up every four years. Additionally, we are now seeing more instances of insourcing being not only a viable alternative but also a way to improve customer relations and the bottom line.
While Infoworld takes a look at seven specific instances where outsourcing has gone horribly wrong, keep in mind that there are also examples of companies that have outsourced successfully.
So now we know that outsourcing can bring both successes and failures, but can it potentially be dangerous and harmful to your company? UBS is finding this to be the case, as reported by The Register. Also, both Boeing and Airbus have had issues that have affected their bottom line where outsourcing is concerned.
The questions you must ask when considering outsourcing are fairly simple in nature, but the outcomes of the decisions are anything but. For example, ask yourself the following questions: Do I outsource in my own country? Do I outsource overseas? Where do I start to formulate a strategy on outsourcing?
If you’re a bit puzzled on how to answer these questions, head on over to Sitepoint.com, which offers thirty-one tips for successful outsourcing.
All in all, is the outsourcing strategy worth the effort—and the risks? Can you and your organization truly benefit from it? You need to think about whether or not outsourcing improves your bottom line and how might that affect your company’s reputation and goodwill.
I think there is no better example than Dell Inc., once a darling of Wall Street. The Texas-based company was at one time the largest manufacturer of personal computers; since Dell used outsourcing to improve its bottom line, it has fallen to third place.
Earlier this year, Dell declared that it is no longer a PC company and half of its profits come from the sales of servers. I think you can attribute Dell’s fall directly to its outsourcing of its technical support to India and the repercussions that came with that decision.
Whether you are a tester, developer, configuration manager, or CIO, outsourcing will be a part of your IT life in the future. I am sure some of you might have been “outsourced” in the past.
The question I leave you with is simple: Will outsourcing affect your future?
