Outsourcing II

I did some research on outsourcing to go along with our class discussions.  Did you know a typical IT organization spends about 5 to 6 percent of its total IT budget on outsourcing? Many argue that the size of the company doesn’t matter; big or small companies are reaping the benefits of outsourcing.

The most popular IT functions to outsource are data center operations, disaster recovery and Web site systems.  This goes along with our article for the week, “Six IT decisions your IT people shouldn’t make”.  GTECH Corporation, which runs the government lotteries, is charged up to $10,000 per minute that the system is unavailable.  Disaster recovery is a serious concern.

I think outsourcing will continue to grow and therefore, will continue to impact the way we do business. 

"Outsourced"

Well we all know “Outsourcing” has made it big when it has it’s own show on NBC.  The first episode starts out with a guy coming back from vacation to find that every cubicle in his office is empty.  His manager is sitting at the front of the room eating some sort of bbq substance.  He quickly learns that the whole company is being outsourced to India and he must pack up and move right away.

The characters in the show are actually pretty funny.  There is one episode where the “bullies” (this is a group who does a higher grade of outsourcing) show up and cause a scene in the cafeteria.  The part that is so funny is the fact that each of them can speak in different accents from around America.  It was really interesting to think about though.  Next time I call to place an order, I could be talking to someone in India who sounds like they live down the street.

Looking at the Cisco case from class, we see that outsourcing has really changed the landscape of some companies.  While Cisco used outsourcing to encourage innovation, we learned that it didn’t work so easily and that it actually provided several disconnects in the company.  I guess the question is when do you outsource and if you do, why?  And lastly, does is always work?

Guest Speakers

I really enjoyed our guest speakers in class on Friday and not just because it was a good break after our statistics exam! 

It was very interesting to hear them use the terms that we learn in class as their everyday language. 

A few things that I had never really thought about before were hospitals and airlines using technology the way that they do.  I was amazed to hear Dr. Mills point out that mistakes do happen and technology has really helped to cut down on some of those mistakes.  I’m sure it was quite a challenge to get everyone on board.  I know at my job we have people who still refuse to use a computer.  They do everything by hand!

 

I also enjoyed seeing all of the technical systems in an airport.  It must be nice to have someone walking around to check you in.  I can’t stand the long lines!  Also, there is a technology that just helps the ramp workers get from point A to point B. 

All of these new innovations have made these businesses very efficient and have also opened the doors for new opportunities.