Offshoring passes the early adopter stage – the early adoption bugs (customer care, black & white view of specifications, etc) have been largely worked out now, particularly in India. Customers have gotten better at specifications and remote management – moving away from the “do what I meant, not what I specified” approach to a more professional approach. Indian firm are better at client management, with most having onshore support cells. Even with the labor arbitrage decreasing, more value is being added. This is the year offshoring will no longer be a novelty, but a mandatory aspect of the business case for delivering IT. Although, many organizations will continue to use a politically acceptable onshore brand Read more
Posts Tagged 'Outsourcing'
The trends are clear. There will be more and more outsourcing as we proceed through the 21st century. On-demand, “pay-by-the-drink,” and related models will dominate technology delivery for the foreseeable future — and very likely permanently. Lack of expertise in the US is accelerating this trend. So where does this leave us? With a new requirement: vendor management. Vendor management is a broad area. Let’s explore the strategic highlights. First, you need a comprehensive sourcing strategy and inevitably a strategy driven by the results of a core competency assessment. (Yes, you have to do this again.) The essential questions here revolve around the core/noncore relationship between technology and your business models and processes. Put another Read more
“Partnering” — besides being a mandatory buzzword — is a curious term. Nowadays, instead of taking over a company, we partner with it. We don’t sell anything anymore; we partner. And now, rather than outsourcing, we create strategic partnerships. While the goal of an amicable and mutually rewarding relationship is admirable, what each party truly expects from the other in an outsourcing arrangement formed under a “partnering vision” is quite different. The client often wants a “well-behaving provider.” But what the client means by “well-behaving” is a provider that accepts nearly infinite scope creep without a commensurate increase in price, immediately reacts to the client’s ad hoc needs (at no charge), and performs what the Read more
Outsourcing big is not always beautiful. Indeed, sometimes outsourcing big can be a blunder. For example, on Friday, Information Age reported a tally of the UK government’s project management track record, and found that IT projects count among its worst failures. Why? “Government needs to stop thinking that when it comes to procuring IT systems, big is always beautiful,” says shadow chancellor George Osborne. “We need to move in the direction of what are known as ‘open standards’ – in effect, creating a common language for government IT,” he said, which would mean “big projects can be split into smaller elements, which can be delivered by different suppliers and then bolted together”. Even in Texas, big Read more
Almost a month ago I told you about the cover story Bob Charette wrote for IEEE Spectrum on the problems in defense acquisition. Today, Robin Young of the NPR show Here & Now interviewed Bob about the article. You can listen to it here. The part with Bob begins about 5 minutes in, and lasts about 10 minutes.
Analysis of the data we collected in our fourth annual software-as-a-service (SaaS) market survey has revealed that 97% of responders are satisfied with their SaaS deployments. Jeff Kaplan will continue to analyze the data over the next few weeks. He wrote in a recent Business Technology Trends & Impacts Executive Update: Given the tangible benefits survey respondents report gaining from their SaaS deployments, I’m not surprised by this finding, but still, it’s impressive! This is a satisfaction level that few established on-premise enterprise software vendors can match. The benefits enterprises are enjoying that have lead to such an unprecedented satisfaction level include reducing infrastructure costs as a result of SaaS solutions, greater functional capabilities from Read more
A recent Cutter Consortium survey revealed that 63% of responding organization are using a SaaS solution, up from 32% in 2007. Over the past four years, Cutter has been charting the growth of the SaaS market with a series of yearly customer surveys. This effort has been spearheaded by Cutter Senior Consultant Jeffrey M. Kaplan. In analyzing the data for a Business Technology Trends & Impacts Executive Update, Kaplan wrote: Last year, the survey gave us a hint that this jump in adoption might occur. Even before escalating fuel costs and the recent collapse of the credit markets, 80% of our SaaS survey respondents last year who reported they were considering SaaS solutions stated they Read more
Cutter’s Bob Charette has written the cover story, “What’s Wrong With Weapons Acquisitions?,” for this month’s IEEE Spectrum. The article highlights the problems in defense acquisition: spiraling costs, extremely lengthy project delays, politics trumping technology, a lack of skilled workers, and a dearth of institutional knowledge as a result of outsourcing. Sound familiar? The scope of the projects and of the failures Bob reports is immense, but the issues are surely ones you can identify with, regardless of which industry you’re in or where you’re based. Bob interviewed dozens of industry and government defense-acquisition experts over the course of a year and a half to support this piece. When we talked about it, Bob remarked, Read more
I had just gotten off the phone with a Merrill Lynch advisor who I know well. She surmised that maybe there is even more capitulation ahead. Maybe we will soon see the Dow at 8,000? Jokingly, I said I would start buying at 6,000. The fear, however, is real and the effect of a big downturn in consumer spending will be significant, not just here in the U.S., but globally. In today’s economy which is driven by consumption, that means tough times for many firms are ahead. From a business strategy standpoint, I see unique opportunities for well-placed firms. I would bet that 95% of all business are now engaging in identical and synchronous maneuvers: Read more
We recently published the results of our annual Cutter Benchmark Review survey on trends and technologies for the coming year. This is the third yearly issue of CBR where we ask our contributors to look forward to the coming year and see what technologies and IT trends we can expect to endure, which ones are emerging, and which ones seem to be losing steam. Our ability to do trending and year-over-year comparisons is strengthening with every survey and the cumulating of results. We have been very careful in keeping some of the questions consistent so that we can comment on changes over time. The trends issues are particularly important in my opinion as they give Read more