When we all think alike, no one thinks very much
— Walter Lippman
Every other IT vendor is Level 5 CMM certified. Even bathrooms are ISO-9000 certified in ITES companies.
None of this is going to ensure success in the long run. The pressure to innovate is coming. Those who catch the trend and stand out from the rest are going to win.
Outsourcing IT or Business Processes locally within a country may not save too much money in the long run. Meanwhile your competitor is developing software at lightning speed compared to your CMM Level 4 certified organization.
Your competitor is a modern, completely on-line, Home Mortgage lending company that processes loans in 14 days. You still have a 30 day cycle internally to close on a mortgage.
Outsourcing a 30-day cycle is not going to magically reduce it to a 14 day cycle unless the service provider comes up with innovations on how this can be done.
Meanwhile, software development offshoring horror stories talk about marginal savings when the cost of communication, personal visits, delays, turnover at the service providers’ staff are all factored in.
So what’s the answer?
Can you develop software with Quality, Speed AND Cost, not asking the customer to choose any two?
Can you develop software that can be deployed in an interative fashion? Can you include early enough feedback loops so that the customer sees what has been done and can do early course corrections? Are your Software Development Practices agile?
Can you take up a 30 days mortgage loan process with the express idea of turning it into a 15 day cycle in stages?
When we all don’t think alike, it’s a win win for both outsourcing service providers and buyers!
When value is shown, buyers will not begrudge higher rates if you can show what you are saving them.
It’s time to get out of the Outsourcing for Cost Savings game! It simply does not work, either for the buyer or the service provider.
