Friday, December 26, 2003

More Outsourcing Fodder

My reply in the most recent JOS outsourcing thread... "Outsourcing should be especially terrifying to financial services/insurance organizations. Given the fact that their lifeblood is truly a set of business processes (i.e., moving bits around)... handing this domain knowledge off to a group in India, Romania, etc. could very well breed a new global competitor.

A bank or insurance company that farms out IT may, in fact, be building and training their own competition... ten, fifteen or twenty years from now.

Of course, I suspect some CEOs and boards are starting to get it. Bank One, I believe, stopped outsourcing and brought everything back in house. Still, I wonder how many institutions really understand the danger that outsourcing represents."

JOS - outsourcing thread

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