Tom Nolle: IT Outsourcing: Good, Bad, Ugly, or What?

Recent stories about how players like GM are taking IT projects back in-house suggest outsourcing IT may not work, and Tom has some survey data that seems to confirm that. But the real problem may not be outsource costs or lack of skill – it may be how well users can manage outsource projects.
7/12/2012 | 26 comments
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Tom Nolle   IT Outsourcing: Good, Bad, Ugly, or What?   9/29/2012 2:11:41 PM
Re: Outsourcing: A Good Option IF Managed Properly
That's what my surveys of enterprises has shown, Technocrat.  There seems to be a very good reason for any company to have at least enough IT expertise in-house to drive a project effectively.  I think the question will always be where to best draw the line and that depends on how different project needs are across the range of present and likely future projects.  It doesn't make sense to sustain skills you'll use once per decade!

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Technocrat   IT Outsourcing: Good, Bad, Ugly, or What?   9/29/2012 1:51:44 PM
Outsourcing: A Good Option IF Managed Properly
@ Tom  I think  your advice is good and sound in regards to outsourcing - a touchy issue for some.  I agree it is a great option if you don't have the skills in-house, but as you mention the real savings is in the ability to manage your outsourcer and get the product or service that a company is paying for.
eethtworkz   IT Outsourcing: Good, Bad, Ugly, or What?   8/1/2012 12:08:28 PM
Re: An easy way out

Call me a sceptic if you will but this debate that you mention here makes sense only for the Largest organizations(someone with over 1000 employees).

For the rest of us,its not really such a big deal to outsource today.

In fact,I believe every company should outsource if its not part of their Core Business strategy.

They will save so much time,energy and resources by handing over entire responsibility to the experts.

WaqasAltaf   IT Outsourcing: Good, Bad, Ugly, or What?   7/31/2012 11:21:54 PM
Re: An easy way out
@ eethtworkz

Its not just for Cash rich companies,but most companies today need to outsource atleast a portion of their tasks because its not easy to get all the skills you want In-house.

I get your point. Cash rich companies are not the only probable ones to outsource. It can be any company who finds it more efficient to outsource. Meanwhile, there is an emerging debate (atleast I am feeling it emerging) that how disastrous is the effect of missing out on learning curve of inhouse activities and its causing organization to reconsider their outsourcing strategy.
eethtworkz   IT Outsourcing: Good, Bad, Ugly, or What?   7/31/2012 1:25:53 PM
Re: Counter Point

Quite right!

I could'nt agree more with absolutely everything you say here.

Tom Nolle   IT Outsourcing: Good, Bad, Ugly, or What?   7/31/2012 1:23:16 PM
Re: Counter Point
I think the effect you describe depends on the nature of the market, which in part means the nature of the tech labor pool.  It also depends on just what "cloud" means.  My surveys do show that SMBs in most all geographies are more likely to purchase "cloud services" as an alternative to in-house-hosted IT elements providing that those services are SaaS.  Labor/support costs are the big problem for most SMBs as you suggest, and lower-level cloud services don't displace those costs because the organization is still required to contribute the application layer.

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eethtworkz   IT Outsourcing: Good, Bad, Ugly, or What?   7/31/2012 12:19:53 PM
Re: IT Outsourcing

I agree wholeheartedly.

But you also need to avoid the mess that comes from Over-Management!!!

At the end of the day,your Techies are there to do a job.

The Managers are just tertiary to getting the job done.

eethtworkz   IT Outsourcing: Good, Bad, Ugly, or What?   7/31/2012 12:14:11 PM
Re: An easy way out

Its not just for Cash rich companies,but most companies today need to outsource atleast a portion of their tasks because its not easy to get all the skills you want In-house.

And developing them very often takes a longtime.Most companies dont have that kind of time today.

So we outsource!


eethtworkz   IT Outsourcing: Good, Bad, Ugly, or What?   7/31/2012 12:07:51 PM
Re: IT Outsourcing

This is an important issue which nobody wants to talk about or discuss in clear terms.

Taking responsibility is a Key matter but most people try to escape it today.

eethtworkz   IT Outsourcing: Good, Bad, Ugly, or What?   7/31/2012 11:54:26 AM
Re: Counter Point

I understand that aspect and it makes sense for the Largest companies(which have more than 1000 employees in total) and a large dedicated IT department.

But for smaller companies(less than 1000 employees);its very difficult to do everything In-house today.

I am sure they will be aggressively considering moving more tasks/actions to the cloud /Offshoring today.

I should know;as a Software consultant,I routinely get many such projects from Small Sized organizations who don't have the dedicated staff in-house or the staff is way too stretched today.

Consultants remain a very easy and convenient way to get the job done without hampering bottomline with Fixed costs considerations that come with having to hire a Full-time employee;especially one who may not be needed for more than 20-25 hours/week.


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