Wednesday, July 14, 2010

The Death of Outsourcing and Contracting

I read this in the WSJ this morning,

 The Japanese auto maker also will extend development times by at least four weeks on new models to do more testing and will cut down on the use of contract engineers.


That Jap automaker was Toyota.


In essence, IBM failed DBS flashed on the front page of the ST this morning. 


Many enterprises have struck the wrong balance between doing the job inside our outside. They were good at seeing the profit numbers and cost savings; pathetic at assessing the risk to secure such gains. 


The death of outsourcing and contracting is exaggerated but a retrenchment here is inevitable.

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