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ECT News Community   »   E-Commerce Times Talkback   »   Re: The Hidden Costs of IT Outsourcing



Re: The Hidden Costs of IT Outsourcing
Posted by: Olga Kharif 2003-10-27 09:53:43
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Keith Franklin, president of Empowered Software Solutions, loves offshore outsourcing. It means more work for his 40-person company. Just last year, ESS, which specializes in developing applications for Microsoft's .NET platform for Web services, earned $500,000 in revenues from fixing buggy software written in India. The shoddy work didn't come cheap, either: The Indian outsourcer went $1 million overbudget. Franklin says he could have done the project for less than $900,000 -- right here in the United States.


Re: The Hidden Costs of IT Outsourcing
Posted by: garsid 2003-10-31 20:39:50 In reply to: Olga Kharif
Gee, if American companies practiced good design techniques, requirements gathering, enforced decent standards, developed and followed solid test and implementation plans, and quit moving the goals posts on projects they wouldn't need to outsource / offshore. Projects don't go over budget because Americans, or Brits (or anybody else) is doing the work. They go over budget because of lousy controls and shifting requirements. I've worked with Indian and Spanish developers and found them to be like any other. Some are very good, some good, some OK, some quite poor. Companies that decimate their IT staff for total offshore development and maintenance will be singing the blues in 2 to 3 years when the labor is no longer so cheap.
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