Fresh off the post yesterday on oDesk outsource statistics here is another interesting article on not realizing the true potential of outsourcing:
‘The true potential of outsourcing is not being achieved and we are still seeing a focus on a narrow remit of labour arbitrage and cost reduction. Overall our survey shows that the emphasis on cost reduction and access to a vendor’s skilled workers reveals a procurement-oriented mind-set that takes a narrow view of the potential benefits of an outsourcing relationship. In short, companies are aiming too low.’
I echo these thoughts. In my experience, you’re asking for long term headaches when the outsourcing strategy is based solely on costing costs.
Related posts:
- Offshore Software Outsourcing and reasons why offshore deals shatter
- Factors Influencing the Outsourcing Decision
- True Benefits of Outsourcing Software Development
- Criticisms of Software Outsourcing
- Challenges in Offshore Software Development
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