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by Anand M.
Original Post: More on Outsourcing
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Gartner analyst Linda Cohen started off her presentation at Symposium ITxpo with a command for the audience of 6,000 attendees: "You have to stop outsourcing now." She said that the chaos created by compulsive outsourcing is making it harder to produce results. Her point is that too many companies have taken outsourcing to an extreme, heading offshore because it's faddish, juggling
Enterprises and software developers under pressure to cut costs are increasingly outsourcing projects to other countries where labor is less costly and subject matter expertise is abundant.
Price per man-hour is only one consideration, however. Poor contract drafting, insufficient due diligence and a lack of project management can cause projects to exceed budgets. Worse, companies may lose control of their intellectual property assets. To minimize such problems, software developers should do more critical thinking up front with the help of legal experts who understand the ramifications of agreements and the language within them. In addition, projects should be managed carefully so that small issues do not balloon into major issues.
If you were going to buy a new truck, and you went to your local dealer, received a price quote and then went to a dealer 50 miles away from your home and found another dealer that would offer you the exact same truck for $5,000 less, which would you buy? Surely you should support your local dealer. But you also want to get the best price you can. Most of us would choose to buy the truck from the dealer farther away and save $5,000.
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