The old strategies for outsourcing, governance, procurement and IT, that organisations think are helping them are in fact often holding them back to the detriment of their shareholders, customers, suppliers and most significantly, to their employees.
Applying the old model of outsourcing to the new economics of IT won’t sufficeOutsourcing to large vendors made sense in the age of CAPEX, when it was expensive to experiment with IT.
Now that organisations are competing against firms iterating thousands of times a day, it doesn’t make sense to wait six months for every release cycle, or to put up with exorbitant fees for changes in scope. Even so, too many organisations still apply the old model of outsourcing to the new economics of IT. This outdated strategy creates an opportunity for new entrants to grab market share from industry leaders. As Jeff Bezos famously observed “your margin is my opportunity”.
A throughout good article about Transformation, Transition and embracing the new economics of IT.
Please see: Transformation or Transition? — Paul Shetler