05.26.08

Trouble in Paradise?

Posted in Best Practices, Governance, Information Technology at 2:09 pm by Gary M. Zeiss

In an article in today’s India Daily, (link) Hrithik Ratnagar suggests trouble for the Indian IT outsourcing segment.  According to Mr. Ratnagar, this trouble is caused by the slowdown in the US economy, the weakness of the dollar and the strength of the rupee, the US political climate, and internal factors within the Indian IT outsourcing community. 

No doubt, these are all significant factors in the market.  However, I think that the Indian IT market may be selling a product that it’s US consumers are beginning look away from.  Why?  Several reasons.

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05.07.08

How Many Throats to Choke?

Posted in Best Practices, Governance, Information Technology at 9:00 am by Gary M. Zeiss

Yesterday, Ephriam Schwartz published an interesting article in InfoWorld (http://weblog.infoworld.com/realitycheck/archives/2008/05/outsourcing_bre.html).  The article talks about the challenges faced when breaking up a large deal into component pieces.

Ultimately, the problem is one of management - the same affliction faced by many outsourcing deals.  Whether it is “one throat to choke” or many “moles to whack,” the bane of most outsourcing deals - and the reason for their relative failure - is inconsistent and often poor management by the customer combined with opportunistic behavior on the part of the vendor.  In my opinion, however, large “aircraft carrier” deals do not solve the management problem - high-quality management does.

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