Deloitte Enterprise Applications
The history of business is filled with stories of new ideas that come back to bite companies - unintended consequences that can ricochet through the value chain like bullets.
They’re called revenge effects - and you can find them all over the outsourcing marketplace. To the extent that you’re supporting applications through a low-cost labour pool that’s isolated from the business, you can expect huge opportunity costs.
Performance improvements in efficiency, knowledge transfer, and automation can all suffer. Inertia can swamp agility. And you can sacrifice the value of innovation. The problem usually starts with low expectations.
Traditional AMS can create a divide between applications support and the rest of the world. Even worse, the support function gets moved to denominator of the value equation, where the measure of success is cost reduction through labour. So when you finally do get around to looking for improvements, the people and resources aren’t in place to deliver. Organisations then end up shuffling talent, hiring consultants, relearning, and rebuilding. And the practical knowledge needed to respond quickly to changing business demands is hidden in the heads of a floating labour pool, out of reach except at prohibitive cost - Read more... (download article)
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