09.14.10
Should You Outsource?
[Cartoon]
Should you outsource information technology software development? No! Didn’t quite get that the first time? Don’t outsource. It is time to in-source. In our new service economy, Enterprise Architects see a fast-paced shift from centralization to decentralization. Decentralization thrives on in-source innovation.
What does it mean to outsource? If you are an international company, the very term “outsource” doesn’t have much meaning. If you need specialized components that can only be provided from an outside party, then that is not outsourcing. Outsourcing means that you are doing your software development within your organization and choose to give that work to another organization. It is actually no different than bringing in consultants.
The obvious value of outsourcing is usually financial. There can be gains by going with the lowest cost. Business managers must make their decisions based on facts. If someone else can do the work needed by the business for less, why not give them the business?
Some organizations will not consider outsourcing because it could potentially allow their competitors access to their internal secrets. This is certainly the case for government organizations involved in security.
So, why give a big “no” to outsourcing? Saving money is great for the bottom line and most businesses do not have secrets that they want to protect.
Outsourcing software development is a confirmation of centralization. This is an old model that has brought silo applications and stagnation of agility. It is this model that is recommended by Centralized IT to sustain their control in the future.
The real cost is not in software development, but rather in the cost of always needing to redevelop. It is the very problem that has lead most organizations to move towards Service-Oriented Architecture and attempt to componentize their software. Services can be decentralized.
In a service economy, every organization should have secrets that set them apart. They need their edge to win the business. No one knows this better than the staff of the business. They are the in-source. They are the movers and shakers that will innovate when new business requirements appear.
Enterprise Architects know that their role in this shift is to provide the environment where innovation can flourish in a decentralized software development environment. Outsourcing development at this time goes against this direction. In-sourcing is the least cost innovative way to go.
The Enterprise Architects can see what is coming and are already preparing. They know that this will be their time. Corporations will be able to completely focus on their business, and automation will be viewed as an agile enabler. Automation will finally become the self-service contributor that the Corporate Office has always wanted it to be. –Enterprise Architects Masters of the Unseen City
Closing the Business / IT gap.
