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Public Council Teleconference: Application Rationalization — Hidden Costs and Smart Decisions
November 17 at 11:00 am US/Eastern (GMT-5)
Join Honorio Padrón, of The Hackett Group, who will share the drivers for companies to tackle application rationalization and the results of research that define the hidden cost of complexity. Additionally, we will discuss key decision milestones—to start or not, holding the course steady and fulfilling expectations.
Virtual Desktop Cost-Benefit Analysis — Michael Jacobs, Catlin Group
The analysis contained in this presentation measures the cost of everything from the machines and licenses to the infrastructure for virtual vs. traditional desktop environments.
Honor your best senior team members - Apply for the CIO Ones to Watch Award
Get well-earned public recognition for your top up-and-coming team members, your IT organization and your enterprise. Award winners will be announced, publicized and feted in May 2010, great timing to help attract new IT recruits to your company.
Learn more about the CIO Executive Council »June 01, 2004 — CIO —
We’ve all seen desperation outsourcing rationalized under the guise of strategy. But these "strategic initiatives" really are ham-handed attempts at rectifying larger ills. The changes are made, different symptoms of the underlying problems emerge, and the root causes remain unresolved. Deployed in this way, outsourcing is a waste of time and harmful to the productivity of the enterprise and the lives of the people involved.
That doesn’t mean that outsourcing (or its varieties of extended staffing, cosourcing, shared sourcing and offshoring) is necessarily a bad thing. It’s a powerful toolbut one that is dangerous in the wrong hands. My assessment is that the executives sponsoring hurried, across-the-board outsourcing initiatives are desperatebusy, scared, frustrated, tired and naive.
Regardless of their motivations, they need some help. If you are a stakeholder of an organization considering outsourcing, you need to get involved, not assume a wait-and-see posture.
Let’s review a real-world, real-time case study. A Fortune 50 IT executive is currently in the process of outsourcing his function. After many years of neglect of IT, the past five years have brought substantial increases in funding, headcount and demand. IT is challenged with lengthy approval processes, increased financial scrutiny, strict headcount limitations and decentralized business clients who have authority to make decisions in every areaexcept IT. The IT executive in question has a poor reputation for delivery and is becoming desperate.
Outsourcing might be able to help address some of the issues raised. In combination with offshoring, outsourcing can get more IT for the money and reduce headcount. It’s also possible to leverage outsourcing to improve process discipline and, thereby, project delivery. The desperation play of the IT executive lies in the assumption that current internal resources are substandard and that across-the-board outsourcing is the only solution (the "better gene pool theory").
Everyone who works with this IT executive has concerns, but so far, all parties are keeping their distance. His supervisors are letting him develop the concept with the confidence that they will have the final say. His peers assume that calmer (senior) heads will prevail or, failing some intervention from the top, that they will deal with the changes if and when they come. And finally, his subordinates are frustrated that they are not involved.
While it’s true that this IT executive has disregarded the spirit and practices of change management, it’s also true that the rest of the leadership staff is guilty of benign neglect. They talk among themselves while their desperate colleague is giving speeches, pushing forward and slowly destroying (both himself and his organization).