Outsourcing is Still Expensive
Small businesses are still reluctant to explore their outsourcing opportunities because of yes, cost.
The survey done by Datamonitor shows that not all small businesses are into outsourcing. In fact, only 25% of the respondents were into outsourcing while almost 60% revealed that they could not imagine their whole IT function being outsourced. The survey also revealed that there small businesses have two priorities in mind. These are:
-customer service
-quality of service
This survey results is contrary to my previous post entitled "Outsourcing: It's Not About Cost" which gained a lot of negative response especially from Mike Kavis and David Carr.
What do you guys think?
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Offshore development makes no sense for small companies. Small companies don’t have the resources onshore to dedicate to an offshore initiative. A colleague of mine who works for a consulting firm that has an offshore division, tells me that their best practices are one onshore resource for every four offshore resource. I don’t see small companies committing to that. My experience with offshore development is that the successful ones require robust processes onshore and a dedicated onshore staff to support the offshore team. Without those to items, offshore will not be cost effective.
Comment by Mike Kavis on August 17, 2007 5:15 pm