Outsource Software
More Reasons than Cost When Outsourcing Software Development
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.
May 1st, 2008 at 12:26 pm
[...] Many organizations are moving their work to one single destination, and frequently in India. In the present days there are trends in transferring projects to China, and the Eastern European countries. In transferring the work, the main motive was the cost factor, where the decision to move offshore was influenced mainly by the availability of the skill at a much cheaper rate than the US or Western European countries. [...]