Some Companies Conclude Data Too Important to Outsource

Ann All

Though most of the articles on outsourcing describe its continued growth, there are certainly instances in which companies that have tried outsourcing determine that it does not suit their needs.


In a recent interview with IT Business Edge, Forsythe Technology's Michael Conley says that one of the main drivers for returning previously outsourced IT functions in-house is companies' realization that data is the key to business improvement, thus management of their data is a task too important to hand off to someone else.


Add to that concerns over security, protecting intellectual property, and falling prices that may allow some companies to tackle tasks more cost-effectively in-house, says Conley.


Conley contends that too many companies do not know what it would cost to run the same applications in-house; performing such a comparative analysis is the first step toward deciding if it would be better to outsource apps or run them on-premise.


More good advice: Make sure the necessary personnel resources are there and, if possible, bring back just one app at a time.

Add Comment      Leave a comment on this blog post
Oct 20, 2006 1:19 AM Arthur Arthur  says:
I always recommend using an independent consultant or vendor to plan and help manage outsourcing reintegration.  An entity with an objective view, a clear mandate and no historical entanglements that cold confuse the issues.  They could also provide another view on verifying the application coming back meets the contract and what has been reported in the offshore effort.  -Arthur Reply
Sep 16, 2008 4:37 AM ryan mullins ryan mullins  says:
how do you conclude data in a science experiment Reply

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