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...If the competency levels were low, why would IT outsourcing continue and flourish ...
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Because CIOs get bonuses for reducing the budget. When it turns out that it actually costs more, and
that the company has lost control over it's own IT, the CIO (and the people who set his bonuses) have moved on*. There's political momentum to keep it going, until the full horror of what has been done becomes evident. Aggressive offshoring of IT systems is akin to giving yourself a lobotomy and handing your cerebral cortex over to a third party to manage. All the decades of wisdom encoded in the IT systems is lost.
There are thousands of companies globally. Some even now are only just sticking their toes into the off-shoring sea, hence there's still a lot of money (and bonuses) to be made. Hopefully, they'll manage to avoid the worst idiocies. I see it as further evidence of management by panacea
, coupled with the politician's fallacy - we must do something, this is something, let's do it.
Many companies are now insourcing. While there is definitely scope for outsourcing, it certainly isn't a cure-all.
I've worked with some great Indian IT specialists, but the majority of the ones I've dealt with remotely have simply not been very good. I've had nothing like the same problems dealing remotely with Eastern Europeans. Here's an interesting blog
, by an Indian, which sheds light on the off-shoring industry, and why quality of staff is often very low. Worth reading the comments from those who justify faking their CVs.
* Highly amusing when Satyam folded and executives were emulating headless chickens squawking "who owns our data?", "who owns our systems?".