Thursday, 17 January 2013

Bob: Outsourcing Guru

The make/buy decision is one which frequently alludes the procurement manager; involvement in it can be an indication of strategic influence. It is high risk but can lead to significant savings. Bob's experience indicates off-shoring software development to China can result in a service costing 20% of the previous cost with no detrimental loss of quality.

The 'You Couldn't Make It Up' is that Bob, who was able to work from home, had actually outsourced his own job and it was two years before the outsourcing came to light. Bob was able to be more personally productive in his own surfing and social media interests, satisfying the reporting needs of his superiors through a daily email. It's not clear how Bob selected the Chinese provider.

The downside is that Bob has now lost his own job - it is not clear whether his work is still being outsourced to China, whether there has been a detrimental impact on quality since Bob's exit from the organisation and what the contractual arrangements were.

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