Outsourcing Contracts Up for Grabs

Why does oursourcing always assume the contract goes to China or India? Can we stop for a monent and look at why so many corporations outsource support to companies cannot offer the quality and caliber of North American and European providers?

Would you honestly even consider hosting your business and intellectual assets in China? Maybe if you don't consider a risk mitigation and security assessment for hosting or SAAS solutions.

Do you really believe that the grads in Bangalore can write code and debug as well as North American programmers? P-lease!

Do you find the level of customer service calls in India on par with the US? They still don't even have enough bandwidth for their call centers QOS.

I'm not saying that this will eventually improve, but let's face it, most of the business leaders who make these outsourcing moves are themselves technically challenged. They are cheaping the value of their products and organizations.

Why do they make these decisions? Bigger gross-margins, bigger bonuses and dividends to shareholders.

So that's what the rationale is, can anybody else admit it?

Agreed, lek1981 - If you do decided to do outsourcing, you have to make sure you have a really good people on staff at your home office to make sure that projects are done correctly and quickly.

Outsourcing depends on project management, particularly oversight, regardless of how good the outsourcing company is. 

I agree, lek1981

Many US companies are realizing that offshoring and outsourcing outside of North America is financially difficult.

In this situation, however, it's the service provider's capabilities that IDC is most concerned with.

Funny that you should mention that, I just read about how Boeing new plane went over budget and was late due to the fact overusing outsourcing. If you do decided to do outsourcing, you have to make sure you have a really good people on staff at your home office to make sure that projects are done correctly and quickly.