parasitic outsourcing
Post on 14-May-2015
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Parasitic Outsourcing
The REAL problem with outsourcing
Parasitic Outsourcing
Common opinions: "Outsourcing robs jobs" "Outsourcing reduces quality" "Outsourcing increases delay" True. Can't argue against those. But there is more.
Parasitic Outsourcing
Company A wants work W done. But wants it cheap. Enter outsourcing to Company B. "Just one level of delegation"? Nope!
Parasitic Outsourcing
Total Work = Work W + Communication effort + Infrastructure effort + Decision making effort + Dependencies + More people, away from source
Parasitic Outsourcing
Enter sub-contracting to C Work W ... + 2 x Communication effort + 2 x Infrastructure effort + 2 x Decision making effort + 2 x Dependencies + More people, further away
Parasitic Outsourcing
What about the money? W costs to $100 2 employees = $50 each A is not very happy 2 employees happy.
Parasitic Outsourcing
Outsourcing, one level: 1 middleman (agent/company) 2 remote employees. $50 to middleman $25 to 2 employees. Middleman ONLY TALKS!
Parasitic Outsourcing
If middleman has a local clout, 5 remote contractors. Still, $50 to middleman $25 to 5 contractors. Work quality = ? 5 contractors' morale = ? Anyone happy?
Parasitic Outsourcing
Coordination = ? Understanding of problem = ? Motivation to work = ? Customer? Workers? Users? Exploitation. Only Middleman is happy
Parasitic Outsourcing
Workers have multiple bosses. Satisfaction = ? Decision nodes double. Mismanagement multiplies. Middleman is CEO of shop that hires contractors. His tangible input? ZERO.
Parasitic Outsourcing
Alternatives? Local Employees. Direct over web. VOIP / Collaboration / Video Conf Open source - customization Individuals over corporations
Parasitic Outsourcing
Two Problems: Trust and Quality. Why trust only brands? Why trust fat corporations? Why not try individuals? Ask contractors to prove quality. Hire individuals with proven abilities - open source coders.
Parasitic Outsourcing
"Open sourced HR" Public, crowd-sourced hiring. Coder profile on Ohloh / SF.net. Social networking Instant "mob teams" ("agile")
Parasitic Outsourcing
Public profiles. Highly visible skills. SourceForge marketplace. Not trustworthy enough?
Parasitic Outsourcing
Ignorance of open source = Pay more for lesser quality. Visit online developer communities more often.
Parasitic Outsourcing
Outsourcing to corporations = more bloat & less quality Don't do parasitic outsourcing. Reduce middlemen.
Thanks!
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