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CIO Insights: IT offshoring/outsourcing — how much is too much?

Rebecca Merrett | Sept. 19, 2013
Three Australian IT leaders share their advice

So you have got a conflict of interests between the company and its staff. The staff has a direct interest in their personal careers and development, and the company has a direct interest in keeping the same technology because it's fit for purpose and they don't want to spend any more money on it. That's often a good reason why you would look at an external company, because if the objectives of a company are not aligned to the careers objectives of the people then you kind of get that conflict of interest.

I think you can get better service at a lower cost when it comes to outsourcing or offshoring. At first glance, that might seem like a contradiction, but it's not at all.

The perfect example of how we have achieved that in the last year is improving our online offering so that more customers can get what they want online instead of calling us up. The customers are happier and they get better service because they can do it online, and it is lower cost for us because every phone call cost money. It absolutely can be the case in outsourcing as well. But it's completely false to believe that all outsourcing is always cheaper than all in-sourcing. Sometimes it is, sometimes it isn't.

 

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