Punitive Outsourcing and How to Avoid It
Thursday, January 31st, 2008In early 2004, I published a META Group paper entitled The Expanding Operational Maturity Gap wherein I formally introduced the term punitive outsourcing. It has become one of my favorite wakeup calls to IT because it taps into that visceral paranoia invoked by any phrase containing the word outsourcing. Punitive outsourcing is self explanatory and almost always elicits a sober chuckle of resignation. It seems a lot of people reluctantly concur that their future is in peril unless something changes.
Fear is an effective incentive to improve. While outsourcing is an expletive to some, the only true reason to fear outsourcing is when it is used as an alternative to the internal IT organization’s ineptitude. This is punitive outsourcing. If you can’t deliver, business leaders will seek someone who can.