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Conv Paula Leadbetter
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by Paula Leadbetter on Oct 23, 2007 - 03:56 AM read 88 times 		 
Granted, outsourcing is not necessarily a recipe for TRUE TRANSFORMATION (btw, why the uppercase?).  But outsourcing can lead to an alignment of operational strategy with corporate strategy.  Organisations that manage to place these in lock-step can indeed experience true transformation.

Enterprise 2.0, operational strategy, transformation
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  • Conv I agree
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    by shoonya Rank_participant on Oct 23, 2007 - 10:46 AM read 75 times     		 

    that outsourcing can result in operational efficiences and lead to cost savings.

    My concern that offshoring is not always the answer to outsourcing. Outsourcing to focus on core competencies makes sense, offshoring critical functions to realize cost savings does not work. The case for cost saving on paper is compelling, operationally not. The case for offshoring is actually more compelling in terms of improved quality of product simply because the product is highly engineered in terms of requirements, design and testing. For example when was the last time you measured 'defect injection rate' for software development within a company. For offshore companies these types of mesurements are quite normal because the resourcing model is based off of these measurements.

     The uppercase was to stress my point.


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