Can outsourcing ever work?
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Topic started by Keith BN (keithy)
Life should NOT be a journey to the grave with the intention of arriving safely in an attractive and well preserved body, but rather to skid in sideways - martini in one hand - burger in the other - body thoroughly used up, totally worn out and screaming "Whooooooo what a ride!"
A topic from Work & Money: Miscellaneous
keithySun 10/08/08 19:05 |
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OK, I'm mainly talking about IT outsourcing here, but any will do.
Our company have taken the decision to outsource the vast majority of their IT/IS functions. They are in the process of rolling up our division (globally) into a separate subsidiary with a view to selling it off, so it has to function on its own. Previously we had 14 people in IT for our division, just to look after our division's specific requirements, and we used main corporate IT for everything else. The idiots in charge decided that as we had 14 before, we only need 14 IT staff for a completely separate company, conveniently ignoring the huge amount of support we got from corp. They have done this because by only having 14 headcount, their accounts look good. They then said that any extra stuff needed can be outsourced, even though that is far more expensive - because it appears on a different budget it doesn't count. (Fucking accountants).
Naturally, the company is slowly dying as a result - the outsource company brought in to handle helpdesk support is proving to be utterly useless, customers are waiting 3 or 4 weeks to receive zero help (whereas in the past my team and I would have resolved those issues for them within half an hour or so - now mu team has been reduced to 2, we do not have the bandwidth to do that even had we not been ordered specifically not to help anyway).
The entire thing is an utter mess, as everyone predicted, but the accountants in charge refuse to budge.
Now, to everyone except those accountants, it is blatantly obvious that if you half your IT staffing (in effect), and then pay someone else to take on the stuff you are no longer doing, it will cost you more (not to mention you will get less good service). And this is being proven to be the case, but the accountants will not listen.
So, anyway. Does anyone know of ANY examples where IT has been successfully outsourced, reducing the company's costs AND improving the level of service provided as a result?
I am genuinely interested to know if it is possible to make it work, because logic says it cannot, and experience (both ours and those in countless other companies to whom I have spoken) shows it cannot, yet for some reason stupid accountants in charge believe otherwise (due solely to their creative accounting).
so any positive examples? |
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