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<?xml-stylesheet type="text/xsl" href="http://blogs.msdn.com/utility/FeedStylesheets/rss.xsl" media="screen"?><rss version="2.0" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:slash="http://purl.org/rss/1.0/modules/slash/" xmlns:wfw="http://wellformedweb.org/CommentAPI/"><channel><title>Reckless : Outsourcing</title><link>http://blogs.msdn.com/rdias/archive/tags/Outsourcing/default.aspx</link><description>Tags: Outsourcing</description><dc:language>en-US</dc:language><generator>CommunityServer 2.1 SP1 (Build: 61025.2)</generator><item><title>iPAQ without a phone, why bother?</title><link>http://blogs.msdn.com/rdias/archive/2004/11/30/272130.aspx</link><pubDate>Tue, 30 Nov 2004 10:45:00 GMT</pubDate><guid isPermaLink="false">91d46819-8472-40ad-a661-2c78acb4018c:272130</guid><dc:creator>rdias</dc:creator><slash:comments>8</slash:comments><comments>http://blogs.msdn.com/rdias/comments/272130.aspx</comments><wfw:commentRss>http://blogs.msdn.com/rdias/commentrss.aspx?PostID=272130</wfw:commentRss><description>&lt;p&gt;That is what I thought when my boss, Dr. Bix, gave me a new&amp;nbsp;&lt;a href="http://h10010.www1.hp.com/wwpc/us/en/sm/WF05a/215348-64929-215381-314903-f62-349051.html"&gt;iPAQ&lt;/a&gt;&amp;nbsp;(yes, ungrateful person).&amp;nbsp; It sat in my office for a few months collecting dust until today when I ripped it open.&lt;/p&gt; &lt;p&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;So it has a keyboard, so what, it's not a phone and where is the camera.&lt;/p&gt; &lt;p&gt;Well,we are demanding of technology these days.&lt;/p&gt; &lt;p&gt;Have you tried using your phone for email?&amp;nbsp; Well,&amp;nbsp;it ain't that fun after the first one.&lt;/p&gt; &lt;p&gt;One thing I was told by a lady in Singapore is that Sing&amp;nbsp;people text message faster than anyone and they don't even need T9.&amp;nbsp; Someone actually did a test to prove it.&amp;nbsp; Well, I don't type fast enough with T9.&amp;nbsp; My thoughts move too quickly for that single finger&amp;nbsp;typing.&amp;nbsp; I&amp;nbsp;love the keyboard.&lt;/p&gt; &lt;p&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;Oh man, one more&amp;nbsp;electronic gadget&amp;nbsp;to carry around!&amp;nbsp; Ugh.&lt;/p&gt; &lt;p&gt;Actually, I was really annonyed on this trip not having an instant-on device with my&amp;nbsp; itinerary (.pdf) on it.&amp;nbsp; I also dig the&amp;nbsp;full screen view of my email and the automatic pick-up of random wireless signals all around me while I go from place to place, my home, coffee shop, work, etc.&amp;nbsp; I don't have to power up the computer and watch it sync.&amp;nbsp; I just pause for a moment and take a quick look.&amp;nbsp;I&amp;nbsp;love that while I am cruising around it just automaticcaly syncs up for me.&amp;nbsp; I never wait for new email on the go.&lt;/p&gt; &lt;p&gt;So aside from a phone, what is it missing?&amp;nbsp;&amp;nbsp;&amp;nbsp;A KILLER APP!&amp;nbsp; Microsoft, on my Christmas list, I have the following:&lt;/p&gt; &lt;p&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;Smart Client&amp;nbsp;Application that allows me to do my expense reports&amp;nbsp;on the iPAQ&lt;/p&gt; &lt;p&gt;Do you think that Santa's elves in our IT department will hear me?&lt;/p&gt; &lt;p&gt;Next year this time, I am hoping for an &lt;a href="http://www.google.com/url?sa=U&amp;amp;start=1&amp;amp;q=http://www.microsoft.com/technet/itsolutions/msit/default.mspx&amp;amp;e=7370"&gt;IT Showcase&lt;/a&gt; of a &lt;a href="http://msdn.microsoft.com/smartclient/"&gt;Smart Client&lt;/a&gt; that connects to &lt;a href="http://msdn.microsoft.com/webservices/building/wse/default.aspx"&gt;secure Web services&lt;/a&gt; in our finance department.&amp;nbsp; That way I wont&amp;nbsp;have to spend 6 hours of precious Microsoft time filling out expense reports for reciepts that are 2 weeks old in a language I don't speak and so therefore have forgotten what they are&amp;nbsp;for.&amp;nbsp; If I had a Smart Client I could store and then forward my expenses on as I go.&amp;nbsp; Or do them on the plane in between cities.&amp;nbsp; It's brainless work that I don't want to be doing the day I get back in my office.&lt;/p&gt; &lt;p&gt;But really, the next generation smart client should be on your&amp;nbsp;cell phone with&amp;nbsp;a point of sale reader.&lt;/p&gt; &lt;p&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;"Would you like an electronic or paper receipt with that miss?"&amp;nbsp;&lt;/p&gt; &lt;p&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;"Thanks, I will scan it electronically into my phone."&lt;/p&gt; &lt;p&gt;Or better yet...&lt;/p&gt; &lt;p&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;"Would you like to pay for that with your credit card, your debit card, or your cell phone?"&lt;/p&gt; &lt;p&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;"Thanks, I like one bill, I will use my cell."&lt;/p&gt; &lt;p&gt;-- Web Services, Ah!&amp;nbsp;--&lt;/p&gt; &lt;p&gt;&lt;strong&gt;Come to think of it, someone should build me this demo, and I promise to try and work you into a talk at Tech Ed.&amp;nbsp; Connecting those systems....&lt;/strong&gt;&lt;/p&gt; &lt;p&gt;&amp;nbsp;&lt;/p&gt;&lt;img src="http://blogs.msdn.com/aggbug.aspx?PostID=272130" width="1" height="1"&gt;</description><category domain="http://blogs.msdn.com/rdias/archive/tags/Web+Services/default.aspx">Web Services</category><category domain="http://blogs.msdn.com/rdias/archive/tags/SOAs/default.aspx">SOAs</category><category domain="http://blogs.msdn.com/rdias/archive/tags/Outsourcing/default.aspx">Outsourcing</category></item><item><title>Service Oriented Architectures, broadband, and outsourcing</title><link>http://blogs.msdn.com/rdias/archive/2003/10/06/56425.aspx</link><pubDate>Mon, 06 Oct 2003 20:17:00 GMT</pubDate><guid isPermaLink="false">91d46819-8472-40ad-a661-2c78acb4018c:56425</guid><dc:creator>rdias</dc:creator><slash:comments>10</slash:comments><comments>http://blogs.msdn.com/rdias/comments/56425.aspx</comments><wfw:commentRss>http://blogs.msdn.com/rdias/commentrss.aspx?PostID=56425</wfw:commentRss><description>&lt;body xmlns="http://www.w3.org/1999/xhtml"&gt;
    &lt;p&gt;
        &lt;span style="FONT-SIZE: 10pt; FONT-FAMILY: Tahoma"&gt;&lt;strong&gt;Social implications of
        making SOAs a reality&lt;/strong&gt;&lt;/span&gt;
    &lt;/p&gt;
    &lt;p&gt;
        &lt;span style="FONT-SIZE: 10pt; FONT-FAMILY: Tahoma"&gt;I have begun doing executive briefings
        at Microsoft. &amp;#160;10 months of employment and I now know enough about the MS offering
        to really begin engaging.&amp;#160; Generally what these briefings entail is discussing
        with C level executives &lt;span style="mso-spacerun: yes"&gt;&amp;#160;&lt;/span&gt;(CIO, CTO, Chief
        Architects) the state of Web services, the value it can bring to their businesses,
        expectation setting and timelines, potential roadblocks, and clear business reasons
        why they should be enabling their IT systems as SOAs in order to maintain their business
        agility.&lt;/span&gt; 
    &lt;/p&gt;
    &lt;p&gt;
        &lt;span style="FONT-SIZE: 10pt; FONT-FAMILY: Tahoma"&gt;There are numerous reasons why
        SOAs are critical to enable services that can easily be moved, replaced, augmented,
        etc.&amp;#160; Services bring the right level of abstraction to business functions and
        enable business women to critically analyze how their company runs.&amp;#160; They can
        make decisions on service consolidation and outsourcing to lower the bottom line and
        enable the organization to provide new services for new business opportunities more
        readily.&lt;O:P&gt;&lt;/O:P&gt;
        &lt;/span&gt;
    &lt;/p&gt;
    &lt;p&gt;
        &lt;span style="FONT-SIZE: 10pt; FONT-FAMILY: Tahoma"&gt;I have been sharing slide decks
        with a few colleagues, especially 
        &lt;ST1:PERSONNAME w:st="on"&gt;Scott 
Garvey&lt;/ST1:PERSONNAME&gt;
        , Felipe Cabrera, and Nigel Watling.&amp;#160; One of Nigel's comments to me was the exact
        comment that I made to Felipe when I stole one of his slides for my deck talking about
        the need for companies to build services that can easily integrate into existing and
        new critical business functions:&lt;O:P&gt;&lt;/O:P&gt;
        &lt;/span&gt;
    &lt;/p&gt;
    &lt;p style="TEXT-INDENT: 0.5in"&gt;
        &lt;i&gt;&lt;span style="FONT-SIZE: 10pt; FONT-FAMILY: Tahoma"&gt;&amp;lt;Nigel&amp;gt; There are so many
        reasons why SOAs are beneficial, is it really necessary to point out that "Outsourcing
        WILL happen"? &amp;lt;/Nigel&amp;gt;&lt;/span&gt;&lt;/i&gt;&lt;span style="FONT-SIZE: 10pt; FONT-FAMILY: Tahoma"&gt; 
        &lt;O:P&gt;&lt;/O:P&gt;
        &lt;/span&gt;
    &lt;/p&gt;
    &lt;p&gt;
        &lt;span style="FONT-SIZE: 10pt; FONT-FAMILY: Tahoma"&gt;In many audiences, this message
        is not well received and has clear social implications. &amp;#160;It is not a question
        of what technology is better, it is a question of whether or not you are trying to
        offer one individual's job to another. &amp;#160;Continual outsourcing will drive wages
        for many types of IT functions down in the 
        &lt;ST1:COUNTRY-REGION w:st="on"&gt;
            &lt;ST1:PLACE w:st="on"&gt;U.S.&lt;/ST1:PLACE&gt;
        &lt;/ST1:COUNTRY-REGION&gt;
        until an IT cost/quality balance is reached in the Global economy.&lt;O:P&gt;&lt;/O:P&gt;
        &lt;/span&gt;
    &lt;/p&gt;
    &lt;p class="MsoNormal" style="MARGIN: 0in 0in 0pt"&gt;
        &lt;span style="FONT-SIZE: 10pt; FONT-FAMILY: Tahoma"&gt;Broadband enables service communication.&amp;#160;
        Insurance companies can now afford automating doctor's offices for claims processing.
        &amp;#160;The cost of a data entry person is more than the installation of the IT infrastructure
        to directly integrate the individual offices. &amp;#160;Telecommunications infrastructures
        with DSL and cable support are growing rapidly. &amp;#160;I don't know if this is true,
        but my friend told me in 
        &lt;ST1:COUNTRY-REGION w:st="on"&gt;
            &lt;ST1:PLACE w:st="on"&gt;India&lt;/ST1:PLACE&gt;
        &lt;/ST1:COUNTRY-REGION&gt;
        there are more cable modems than cars.&lt;/span&gt; 
    &lt;/p&gt;
    &lt;p class="MsoNormal" style="MARGIN: 0in 0in 0pt"&gt;
        &lt;span style="FONT-SIZE: 10pt; FONT-FAMILY: Tahoma"&gt;&lt;/span&gt;
    &lt;/p&gt;
    &lt;p class="MsoNormal" style="MARGIN: 0in 0in 0pt"&gt;
        &lt;span style="FONT-SIZE: 10pt; FONT-FAMILY: Tahoma"&gt;&lt;/span&gt;&lt;span style="FONT-SIZE: 10pt; FONT-FAMILY: Tahoma"&gt;The
        ubiquitous nature of broadband and the maturation of Web services technology makes
        the potential of IT outsourcing even more a reality. &amp;#160;Recently the CIO section
        of TechRepublic referenced various articles on the social impact of outsourcing. &amp;#160;These
        articles resulted in some pretty awesome discussion.&amp;#160; When I think about services,
        I think about how one can build a service that is really satisfying a business problem.&amp;#160;
        Keep in mind, that there will always be a quality versus cost metric to calculate.&lt;/span&gt; 
    &lt;/p&gt;
    &lt;p class="MsoNormal" style="MARGIN: 0in 0in 0pt"&gt;
        &lt;span style="FONT-SIZE: 10pt; FONT-FAMILY: Tahoma"&gt;&lt;/span&gt;
    &lt;/p&gt;
    &lt;p class="MsoNormal" style="MARGIN: 0in 0in 0pt"&gt;
        &lt;span style="FONT-SIZE: 10pt; FONT-FAMILY: Tahoma"&gt;In &lt;a title="http://techrepublic.com.com/5100-6298_11-5074467.html?fromtm=e032" href="http://techrepublic.com.com/5100-6298_11-5074467.html?fromtm=e032"&gt;Outsourcing
        Backlash: Globalization in the Knowledge Economy&lt;/a&gt; by Dion Wiggins and Dianne Morello,
        I found myself re-reading the statement they made about the need for companies to
        have&amp;#160;"locals" in their IT departments that have a&amp;#160;"deep understanding of
        local markets and mindsets". &amp;#160;I believe this to be true.&amp;#160; Outsourcing can
        only be successful when the function being outsourced is not a core component of a
        company' s business value or their corresponding business partner adds more value
        then the business itself can add because of the partner's domain expertise.&amp;#160;
        Other corporations look at IT as a competitive differentiator and feel that the IP
        associated with their IT is too invaluable to outsource because it is their competitive
        edge.&amp;#160; I see this frequently in the German and Swiss IT banking communities.&lt;/span&gt; 
    &lt;/p&gt;
    &lt;p class="MsoNormal" style="MARGIN: 0in 0in 0pt"&gt;
        &lt;span style="FONT-SIZE: 10pt; FONT-FAMILY: Tahoma"&gt;&lt;/span&gt;
    &lt;/p&gt;
    &lt;p class="MsoNormal" style="MARGIN: 0in 0in 0pt"&gt;
        &lt;span style="FONT-SIZE: 10pt; FONT-FAMILY: Tahoma"&gt;&lt;/span&gt;&lt;span style="FONT-SIZE: 10pt; FONT-FAMILY: Tahoma"&gt;The
        question remains, "Which pieces of a company's value chain should be outsourced?"&amp;#160;
        There are numerous services that make a lot a sense to outsource, e.g. retail companies
        outsource their payment processing systems, all types of companies outsource their
        mass marketing and data warehousing, financial and insurance companies outsource data
        cleansing, the list goes on.&lt;O:P&gt;&lt;/O:P&gt;
        &lt;/span&gt;
    &lt;/p&gt;
    &lt;p&gt;
        &lt;span style="FONT-SIZE: 10pt; FONT-FAMILY: Tahoma"&gt;In an excellent article, &lt;a title="http://www.stratnews.com/" href="http://www.stratnews.com/"&gt;Lift
        and Shift: Moving the Back Office to India&lt;/a&gt;[1] by Rafiq Dossani and Martin Kenney,
        they discuss trends and types of outsourcing within the IT value chain in 
        &lt;ST1:PLACE w:st="on"&gt;
            &lt;ST1:COUNTRY-REGION w:st="on"&gt;India&lt;/ST1:COUNTRY-REGION&gt;
        &lt;/ST1:PLACE&gt;
        .&amp;#160; This article discusses drivers behind outsourcing to 
        &lt;ST1:COUNTRY-REGION w:st="on"&gt;India&lt;/ST1:COUNTRY-REGION&gt;
        , stats on outsourcing growth in 
        &lt;ST1:COUNTRY-REGION w:st="on"&gt;
            &lt;ST1:PLACE w:st="on"&gt;India&lt;/ST1:PLACE&gt;
        &lt;/ST1:COUNTRY-REGION&gt;
        , the impact of telecommunications improvement and reforms being made in the Indian
        Venture capital markets.&amp;#160; I would love to see stats on the number of IT folks
        that have recently migrated back to 
        &lt;ST1:COUNTRY-REGION w:st="on"&gt;
            &lt;ST1:PLACE w:st="on"&gt;India&lt;/ST1:PLACE&gt;
        &lt;/ST1:COUNTRY-REGION&gt;
        as a by-product of the .bomb and the implication of these folks pushing for higher
        wages based on their skill set and quality of living expectations.&amp;#160; Trends like
        this in 
        &lt;ST1:COUNTRY-REGION w:st="on"&gt;India, 
&lt;ST1:COUNTRY-REGION w:st="on"&gt;
                &lt;ST1:PLACE w:st="on"&gt;China&lt;/ST1:PLACE&gt;
            &lt;/ST1:COUNTRY-REGION&gt;
            , and other areas where IT outsourcing is predominately being done and whose outsourcing
            markets are rapidly increasing will give us an idea on how long it will take until
            a balance is reached with the cost of IT abroad will be.&lt;O:P&gt;&lt;/O:P&gt;
        &lt;/ST1:COUNTRY-REGION&gt;
        &lt;/span&gt;
    &lt;/p&gt;
    &lt;p&gt;
        &lt;span style="FONT-SIZE: 10pt; FONT-FAMILY: Tahoma"&gt;What I find interesting is that
        MS is very much a high touch, face to face type company.&amp;#160; Business is done in
        large amounts via both IMS, SMS and email; however, meeting rooms are very hard to
        come by. &amp;#160;MS is very aggressive about new employees relocating to 
        &lt;ST1:CITY w:st="on"&gt;
            &lt;ST1:PLACE w:st="on"&gt;Redmond&lt;/ST1:PLACE&gt;
        &lt;/ST1:CITY&gt;
        so that they can be the most productive by interacting with the numerous groups face
        to face.&amp;#160; In addition, there is an even balance which includes much outsourcing.
        &amp;#160;Don't outsource core competencies and competitive advantage. &amp;#160;MS is not
        known for making good food, so we do outsource our cafeteria. &amp;#160;But we do not
        often outsource our development.&lt;O:P&gt;&lt;/O:P&gt;
        &lt;/span&gt;
    &lt;/p&gt;
    &lt;p&gt;
        &lt;span style="FONT-SIZE: 10pt; FONT-FAMILY: Tahoma"&gt;There are numerous reasons why
        outsourcing can and will fail. &amp;#160;There are also numerous reasons why outsourcing
        can and will be successful.&amp;#160; Poor risk analysis, lack of understanding of cultural
        differences, poor management, etc. can all contribute to failure.&amp;#160; The key is
        to understand what components of the value chain must stay core to a company's business
        process.&lt;O:P&gt;&lt;/O:P&gt;
        &lt;/span&gt;
    &lt;/p&gt;
    &lt;p&gt;
        &lt;span style="FONT-SIZE: 10pt; FONT-FAMILY: Tahoma"&gt;If you outsource everything that
        is of value to your customers, your business will die and you will become a commodity.&amp;#160;
        Companies need to think how they can get more value out of the IT departments that
        they have in place, which components are not core to the business, what services to
        consolidate to better leverage their economies of scale, and how services can enable
        additional business value.&lt;O:P&gt;&lt;/O:P&gt;
        &lt;/span&gt;
    &lt;/p&gt;
    &lt;p style="TEXT-INDENT: 0.5in"&gt;
        &lt;span style="FONT-SIZE: 10pt; FONT-FAMILY: Tahoma"&gt;Now I put my marketing hat on....&lt;/span&gt; 
    &lt;/p&gt;
    &lt;p style="TEXT-INDENT: 0.5in"&gt;
        &lt;span style="FONT-SIZE: 10pt; FONT-FAMILY: Tahoma"&gt;Ask yourself, "How can you lower
        your cost of development and create new business opportunities for my company?"&amp;#160;&amp;#160;.NET
        has proven time and time again that it can lower IT development costs radically and
        improve time to market. &amp;#160;Numerous applications are being built because the cost
        associated with implementing the new business functions is so low with .NET. &amp;#160;In
        many cases, it is critically important to have employees that understand your business
        functions. &amp;#160;The way to get the right cost/quality balance without outsourcing
        is to invest in the right tools that enable your developers to be more productive
        and reduce overall maintenance costs.&lt;O:P&gt;&lt;/O:P&gt;
        &lt;/span&gt;
    &lt;/p&gt;
    &lt;p style="TEXT-INDENT: 0.5in"&gt;
        &lt;b&gt;&lt;span style="FONT-SIZE: 10pt; FONT-FAMILY: Tahoma"&gt;GotDotNet&lt;/span&gt;&lt;/b&gt;&lt;span style="FONT-SIZE: 10pt; FONT-FAMILY: Tahoma"&gt;?&lt;O:P&gt;&lt;/O:P&gt;
        &lt;/span&gt;
    &lt;/p&gt;
    &lt;p&gt;
        &lt;span style="FONT-SIZE: 10pt; FONT-FAMILY: Tahoma"&gt;Am I drinking the MS koolaid or
        what?&lt;O:P&gt;&lt;/O:P&gt;
        &lt;/span&gt;
    &lt;/p&gt;
    &lt;p class="MsoNormal" style="MARGIN: 0in 0in 0pt"&gt;
        &lt;span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"&gt;
        &lt;O:P&gt;&amp;#160;&lt;/O:P&gt;
        &lt;/span&gt;
    &lt;/p&gt;
&lt;/body&gt;&lt;img src="http://blogs.msdn.com/aggbug.aspx?PostID=56425" width="1" height="1"&gt;</description><category domain="http://blogs.msdn.com/rdias/archive/tags/Web+Services/default.aspx">Web Services</category><category domain="http://blogs.msdn.com/rdias/archive/tags/SOAs/default.aspx">SOAs</category><category domain="http://blogs.msdn.com/rdias/archive/tags/Outsourcing/default.aspx">Outsourcing</category></item></channel></rss>