Wednesday, January 30, 2008

Outsourcing - not so hot

Stories like this just warm my heart.

Several organizations that once participated in information-technology and business-process outsourcing are now beginning to go back to in-house operations and explore new alternatives, according to a new study by Deloitte Consulting LLP.

The study, “Calling a Change in the Outsourcing Market,” shows that 70% of participants have had significant negative experiences with outsourcing, and are now exercising greater caution in approaching it. One in four participants reportedly have brought functions back in-house after realizing that they could be addressed more successfully and/or at a lower cost internally, while 44% did not see cost savings happening as a result.
And the Vulture just smiles...

Wait, it gets better.
Additional study findings include: 62% of participants realized that they require more management efforts in comparison to the original estimates; 57% said they could not free up internal resources for other projects, leading to larger-than-anticipated, deal-management overhead; 52% ranked cost-related issues as the main risks of outsourcing; 81% have limited or no transparency to a vendor’s pricing and cost structure, resulting in increased chances of paying additional costs. In addition, 83% said they have renegotiated outsourcing deals due to pricing and to business, technology, and regulatory environment changes; 53% have moved from long-term contracts (6 to 10 years) to shorter contracts (up to 5 years) to increase flexibility and bargaining power; and 73% are working with multiple vendors to reduce vendor dependency. Participants that had exclusive deals in the past warn that they are risky, and they will not enter into them again.
So...let me get this straight. You asshat executives were willing to take all of your software development and outsource it (mostly to Asia), putting qualified Americans out of a job just to save a buck..............and it blew up in your faces. GOOD!

I hope that all of YOU lose YOUR jobs as a result. Maybe then you'll learn to be Americans first, and greedy, whoring money grubbers second.