Delivering Business ValueLean IT

Is IT becoming a commodity?

The primary justification for Off-shore outsourcing is cost reduction.  There is no doubt that a 3rd world country can provide cheaper resources but can they deliver the same business value?

Why would a business outsource their IT a 3rd world country?  Many IT organizations assume their value is understood and they make no attempt to measure and report their value to the business.  They are reactive to business requests instead of proactively developing and implementing a strategy that delivers measurable business value.  Because they cannot measure or define their value, they are viewed as a commodity and are subject to commodity based decisions (off-shore outsourcing).

There are many things that IT does that waste money or do not make sense.  If IT organizations would focus on delivering value to the business and tracking their services so they can actually measure and prove the value, then they would cease being a commodity and there would be no justification for off-shore outsourcing.  My company has been very successful delivering ON-SHORE outsourcing because we are obsessive about delivering and measuring our value.

If the U.S. is to prevent the extinction of the IT profession they need to pay more attention to proving their value to the business because they will not be able to compete against 3rd world labor costs.

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