Friday, April 24, 2009
Enterprise Architecture: How to guarantee outsourcing failure...
I have developed a reputation for bashing Indian outsourcing without necessarily taking a look at the worst practices in the United States. Today's blog entry focuses on one that I believe accounts for the majority of failure...
So, how do we align what's best for our employers while not sacrificing what is best for our wallets?
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Imagine you are responsible for outsourcing a particular function within in a company... Now, the outsourcing has been going well, but it's time for a contract renewal. Will your employer thank you for simply renewing and keeping things the same, and thus keeping the service running well? Unlikely.
More likely, you'll get your bonus only if you:
- screw your supplier into the ground by demanding a huge reduction in rates (leading to poorer service)
- decide to move the contract to another provider (potentially leading to poorer service
- make some other big change e.g. insourcing.
So, how do we align what's best for our employers while not sacrificing what is best for our wallets?
