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Sunday
04Nov

IT Service Outsourcing and the Innovation Dilemma

 Many IT leaders enter into outsourcing arrangements with an expectation that the outsourcing provider will not only live up to the letter of the contract, but by virtue of being a Big Outsourcer, will bring something more to the table.

There's a lot of talk about outsourcing and innovation. Here's the thing... outsourcing was innovative in itself when it first started! Everyone was proud of their 'lift and shift' solution to non-core services in order to save a few bucks. But saving a few bucks isn't cutting it anymore. Businesses need innovative solutions to their problems. But as outside entities, how are outsourcers even supposed to know your problems?

Outsourcers are like factories; and factories can't innovate. Simple as that. It's like expecting a maid to come do your laundry AND help you figure out why little Johnny got a D on his last algebra exam. Outsourcers are not familiar with your problems and are not being paid to solve them. You outsourced non-core services so you can spend time innovating and solving real problems... not getting grass stains out of little Jenny's soccer jersey.

Innovation is to expected in offshore product development, but that is a totally different animal. No doubt, the talented management that lead the world's top outsourcing firms will figure out a way to add value to your business... but don't expect it without a price.


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