Strategic Outsourcing | SQL Server Performance Forums

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Strategic Outsourcing

There appears to be an increasing trend for organisations to consider outsourcing. When the word outsourcing is mentioned many people automatically think about roles in their own organisation being supplied by developing countries where the cost of labour is significantly less. However, outsourcing is a strategic decision and not just a cost decision, as it allows an organisation to focus on what its core competencies are. For example, it normally does not make sense for a company to write its own database management system, unless the company develops DBMS platforms.
From talking to a few companies over the last few days at Tech.Ed in Australia, many are looking at outsourcing to help improve their support infrastructure. By utilising resources in another country, they can provide a business advantage, as they are able to provide 24-hour support without the need for the local support team to be on call 24×7—thereby not only improving the efficiency of support but also increasing the moral of employees, as they no longer need to be on call after hours. Is your IT team starting to look at how outsourcing can provide a strategic business advantage?
– Peter Ward

My only comment to outsourcing is that there is such as tendency in the market today to utilize markets where they labor is cheaper. I stay on the time-honored priniciple that "you get what you pay for" when it comes to outsourcing. Although outsourcing often looks to be strategic advantage at a high level, it often has consequences that can ultimately affect the business and local market where the company exists.I site a recent example from my area. I company called Micron in Boise, Idaho has recently laid off over 1000 employees and has begun outsourcing their IT services to India. This decision had huge consequences to the local community and has hurt their standing within the local company and has created bad press for the company in their global market.If this trend continues, I think the quality of IT services will continue to decrease and ultimately affect the bottom line of comapanies who heavily rely on outsourcing.

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