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Outsourcing vs. Telecommuting

It's an interesting idea, comparing telecommuting to offshore (or even onshore) outsourcing. It's not ok to have an IT department and spend $50M per year, but it is ok to have an outsourcing contract for $45M per year and no IT department. If you could save $5M per year by getting rid of 80% of the office infrastructure in favor of telecommuting and outsourcing some of the basic infrastructure services, why go to an outsourcer? In theory you could control your destiny and save money.

An anonymous reader asks: "Corporations and management resisted telecommuting for years, now jobs flow to distant nations. Did telecommuting become acceptable because of the greater distance? Because some form of on-site management persists? Because labor laws are favorable? Because a well paid middle class is a political threat? Is it really as simple as money? I'll work cheaper if I can choose where I live and work. Must I leave my country to do so?"

I've seen enough outsourcings and insourcings and deals gone bad to know that outsourcing specific items or infrastructure works well, but trying to outsource the custom development and maintenance and the management of IT that goes with it is hard enough that it usually costs more and leaves the company hobbled. Read more at /.

Posted by Mark Friday, July 25, 2003 3:46:00 PM | permalink |