Cool. That will make me sleep a little better. I am
still somewhat worried though. Maybe because I am
young and foolish. I wish I had more experience.

Stede

--- William Pietri <[EMAIL PROTECTED]> wrote:

> 
> On Tue, 2004-11-09 at 08:55, Stede Troisi wrote:
> > Without a union (and maybe even with) our fictious
> > company could NEVER, EVER compete with WIPRO and
> other
> > firms from India that can do the same things for
> > 1/10th the price. 
> 
> The only reliable numbers I've seen on this were
> from a company who
> tried outsourcing a percentage of development work
> to India. Their
> conclusion was that it really cost about 50% as much
> to get equivalent
> quality. But this was in a pretty un-agile shop.
> They could have more
> easily saved the money by reducing the waste in
> their existing process. 
> 
> Further, as others have pointed out, XP shops
> provide advantages that
> outsourcers cannot match. The obvious one is
> agility, but there are
> others. One of the side effects of building software
> is the creation of
> knowledge and skill. If you outsource the software
> creation, somebody
> else is reaping the benefit of the knowledge you
> paid to create, and
> will shortly be applying that skill to other
> companies, some of them
> your competitors.
> 
> For non-core software, that's fine. Some companies
> now don't just
> outsource their payroll software, they happily
> outsource the whole
> payroll process. But for software that's part of
> your competitive
> advantage, outsourcing is a terrible business
> decision.
> 
> 
> That's why outsourcing doesn't really worry me. One
> a recent project,
> investors quizzed the CEO on why he wasn't
> outsourcing the development.
> Both he and the VP of product development vigorously
> defended the
> decision to do the work in house. Why? Because the
> competitive landscape
> didn't allow them the extra time and effort that
> outsourcing requires,
> and they needed to be able to respond to changes in
> that landscape
> within days, not months.
> 
> William
> 
> 
> 
> 
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> 
> 
> 
> 



                
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