View Full Version : A Deloitte survey reveals that 70% of large companies had dismal experiences with outsourcing projects.
04-20-2005, 11:23 AM
<chuckle> Exactly what some of us predicted. To the letter. Joe
04-20-2005, 11:44 AM
Given the assumption that the survey accurately reflects all U.S. industry, the question remains as to why the practice persists. Based upon empricism, I would offer a conclusion that the office politic is being held to a higher degree of importance than the health of the company. In other words no one in a losing project wants to admit that it <u>is</u> a losing project for fear of taking responsibility for a monetary loss. I personally witness (now on a daily basis) the equivalent of happy faces being pasted on "black hole" projects where resources and cash are sucked in, and nothing much new ever results. Execs bybass I.T. to start their own personal projects, the need for which is dubious at best. Then sit back and watch the spin begin. Dave
04-20-2005, 11:50 AM
Several of my former co-workers were caught in this. I know at least one took years trying to find work. We now also have a new level of distrust between management and staff. Companies that tried this will never be able to get the same quality staff, and the employees may never find the kind of job they thought they had again.
04-20-2005, 05:25 PM
It is far from over. The conclusion after reaching this 70% dismal outsourcing result finding in the study? Limit outsourcing contracts to five years instead of six to ten years. I am not making that up. rd
04-21-2005, 09:36 AM
Heh (http://www.sourcingmag.com/blog/blogdefault.aspx?view=plink&id=383). Markets want to be free. In the long run, successes will rise, and failures will, er, fail.
04-21-2005, 09:53 AM
Those who wish to skirt the laws and regulations, will love this option. For the majority who are upstanding, but trying to save money i suspect this one will fail even faster due to no regulation.
04-21-2005, 11:38 AM
cdr5000 wrote: expert ALWAYS comes from somewhere else Yeah, , , , , ,and a coordinator is someone with a desk in between two expediters. Dave
04-22-2005, 08:38 AM
04-22-2005, 09:08 AM
I can't help thinking that there is an awful lot of stuff like that going on that we don't know about, , , , ,and, , , , ,maybe even more that has never been detected. Dave
04-27-2005, 05:22 AM
Don't confuse off-shoring and out-sourcing... they are two completely different ideas. (But are not mutually exclusive) My own company just outsourced all IT operations about two months ago. We all still have jobs and the sky hasn't fallen in yet. Outsourcing isn't evil, and it can be a plus for all parties involved: - IT professionals work for a company that knows what motivates IT professionals. - The company can foist the management of IT off onto the outsourcing company. Face it... they were probably bad at dealing with the IT director and staff anyway. - The outsourcing company makes some money in the process. Win win win IMHO.
04-27-2005, 06:17 AM
A Deloitte survey reveals that 70% of large companies had dismal experiences with outsourcing projects. See link below - http://www.informationweek.com/story/showArticle.jhtml;jsessionid=RMUSX5M05HGIYQSNDBGCK HSCJUMEKJVN?articleID=160902525
04-27-2005, 06:17 AM
Don't confuse off-shoring and out-sourcing... they are two completely different ideas. (But are not mutually exclusive) There is a syllogism here. Off-shoring is outsourcing, but outsourcing is not necessarily off-shoring. The ideas are (with some exceptions) very much the same. My own company just outsourced all IT operations about two months ago. We all still have jobs and the sky hasn't fallen in yet. Not yet anyway. What is it that you do? How did your IT operation staff retain their employment? Outsourcing isn't evil, and it can be a plus for all parties involved: Sure it can, but most of the time it is not. - The company can foist the management of IT off onto the outsourcing company. Face it... they were probably bad at dealing with the IT director and staff anyway. This is where most outsourcing efforts fail. Study after study has shown that in order to be successful, an outsourcing effort has to be strictly managed, qualified, and quantified. Otherwise the results will invariably be less than expected. - The outsourcing company makes some money in the process. The outsourcing company always makes money. This is true whether the project is successful or not. Failed projects are almost always a result of bad specifications and management by the original company. Win win win IMHO. <ul> Well, the outsourcing company wins. The IT staff loses Most of the time the hiring company loses.[/list] Now that Deloitte and others have published this and similar studies, it is no longer a matter of opinion. Dave
Powered by vBulletin® Version 4.1.5 Copyright © 2013 vBulletin Solutions, Inc. All rights reserved.