OUTSOURCING RESPONSIBILITY & EXPERTISE
In a theoretically sound and a operationally robust, model outsourcing takes care of non-core jobs of the company or enterprise much better than what the company could perform at its best and at a more competitive price. The hassles of operations gone. The enterprise would then function on its core tasks in a more focused manner, which would be shown in its results. The business enterprise and outsourced entities would work in tandem and the customer or user would not realise that he in interacting with more than one entity.
Third world and India has its own issues which puts the best of the models is disarray. Without getting into the success and otherwise of this model in the west, IT behemoths seem to controlling their empires themselves and that to heavily centralised. For us, the outsourced model spread like wild fire. In one of our projects we had 28 outsourced entities. Which SAP can take of this, nobody has any idea? How many APIs we need for the Project Management, if it were happen seamlessly, that too without Contract Management.
Outsourcing has in real terms has not only meant the task being outsourced but responsibility and expertise too. More often than not the customer keeps struggling with the outsourced entity. A parent battling it out with the transport contractor. Once the responsibility is divested from any task, it’s delivery slowly gets degraded. Conversely, the scaling which should come naturally, does in no way emerge. What if the outsourced does the same act again? Subletting. You can only latch on to a thin thread of hope.
Here the concept of task expertise generally does come into the picture, its just how much corners can you cut and gain financially. In the bargain, the owner does not have the depth of data and if he has the data to some degree, this does not come with business, financial and contextual intelligence. You have to finally run like on auto rickshaw market rates. Worse still, the expertise which the owner should have gained, goes to someone else at best and at worst nobody picks it up. A tragedy indeed. Data dimension is another story.
OUTSOURCED MEANS CAMOUFLAGED BROKEN SUPPLY CHAIN.