Sunday, January 11, 2009

Balance in between In source and Out source for IT services

Recent big news and the hottest topic of the financial and IT market globally is really focusing on the Satyam Computers financial scandal which similar to Enron previously. It had significant impact to the client who use the services from Satyam for their day to day operation. Personally, I will see that the impact to the company who use Satyam as their IT our source vendor, which may result the significant cost increase as they original plan. Now is time for the company to reconsider the balance in between outsource and in source. This topic is nothing new to the world as always some claim outsource is better and some claim in source is better.

My point here is, both of them is the same, at the end of the day, CIO or CEO will only interesting to manage the figure of operation expenses as well as the result to be able to achieve. Problem of choosing which is the better deal in term of outsource or in source is purely base on people issues. IT is a business, is generating revenue and stop thinking IT as a COST will help the company and the business to grow faster than the competitor. Non of the success company today is not rely on their IT infrastructure to simplify and automate the business process with 24x7x365 availabilities. The Satyam case had provided the alert to the management to rethink the best option to run the IT services to the business. I am always believe the balance in between in source and outsource will help the operation rather that rely fully on 3rd party vendor.

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