Should you outsource your next project? Is it worth keeping IT operations in house, or should you just outsource that in its entirety as well? Depending on who you ask, the answer will vary.
Some may regale you with outsourcing horror stories. These are a bit like urban legends though. All of the tales seem to be about the teller’s cousin’s friend who worked at a company that went belly up after outsourcing a single project. There’s very little direct experience.
Others will express surprise that you aren’t outsourcing already. After all, it’s the perfect solution. It saves money and makes life so much easier.
Unfortunately, too many people listening to these voices without researching enough themselves. Whether or not you should outsource is a choice that only you can make. Before you do, let’s dispel five common myths.
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Nothing Has Changed in Outsourcing
Many of those who fall in the ‘never outsource at any cost’ camp often experienced outsourcing in the early nineties. This was the era when young bucks, fresh out of college walked into corporations everywhere to inform experienced programmers, operations staff, systems analysts, and project managers with decades of experience that they were doing everything wrong.
As was expected, their text book methodologies often failed. Projects would languish for months without progress, and the powers that be shifted blame. Thanks to older pricing models, the solution providers often collected their money regardless of outcome.
This is no longer the case. Modern pricing models require delivery on promises before payment is made. Consulting firms now operate as leanly and competitively as possible. They understand that in most industries proven development experience will trump an MBA every day and twice on Sundays.
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You Can’t Outsource And Expect Agile or Other Modern Methodologies
This is simply untrue, and the reason is simple. It’s all about consumer demand. Too many companies are embracing Agile and other development methodologies. Consulting firms cannot ignore these and stay viable. In fact, companies that wish to embrace Agile may be better off bringing in a team experienced in the methodology, and then using that as a means to teach their own teams.
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You Should Never Outsource What is Mission Critical
There are no hard and fast rules about what a company should or should not outsource. The only guideline is that they should make thoughtful decisions, based in reality, that align with the company’s goals. Could it be foolish to rely completely on a human knowledge base that exists entirely outside of your organization? The answer is yes, it may be foolish to do that.
On the other hand, it is also foolish to allow mission critical projects to continue along at a snail’s pace or to deal with poor outcomes because somebody stubbornly insisted that nothing be completed out of house. Mission critical projects can be outsourced in ways that do not require staff members to be left out of the information loop.
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Outsourcing is Bad For Morale
For most organizations, outsourcing creates change. That change isn’t bad for morale. However, the way it is handled sure can be. This is why this myth has persisted for so long. All too often, what is painted as low morale resulting from outsourcing is actually caused by one or more of the following:
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Management failure to take responsibility for IT shortcomings.
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Failing to be honest or reassuring with employees about job security.
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Secretiveness and the creation of communications gaps.
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The seeming ability to find resources for off-site contractors but not employees.
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Blindsiding employees with outsourcing announcements.
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Failing to provide adequate office space for both contractors and staff.
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Not providing a clear roadmap for the future.
As long as companies are forthcoming, communicative, and commit to valuing their employees many of these issues won’t come to pass. Instead of viewing outsourcing firms as a threat, staff can come to view them as a solution providing partners with whom they share common goals.
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Contractors Benefit From Offering Convoluted Solutions
‘Don’t outsource anything! You’ll still be paying them ten years from now because only they will be able to manage any of their solutions’. Once again, this is a ‘blast from the past’ warning that has little basis in current reality. It’s no longer a good business for companies to implement complex solutions that only they can support. In fact, providing ongoing support with no end date often creates a demand on resources that simply isn’t compatible with profitability.
This isn’t to say that long term support is never the right approach. Sometimes it is the best option for all involved. Still, it’s no longer true that firms benefit from playing keepaway with knowledge.
Conclusion
If you decide that outsourcing is the right choice, Brainberry is always there to help. If not, we understand that it isn’t the right path for every project or every organization. If you have questions, feel free to contact us. You can count on us for honest answers on outsourcing and your current projects.