CASE STUDY SYSTEMS DEVELOPMENT
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......The Paradox of Outsourcing
The perception is that outsourcing the most common IT tasks will result in significant cost savings over time, as these tasks are easily mastered by the employees at these firms. In fact just the opposite is the case, with case studies indicating that employees hired at outsourcers for the more menial tasks lack the necessary educations and professional backgrounds to do them competently (Rottman, Lacity, 2008). The paradox of outsourcing is the reputation the industry has for providing cost reduction strategies for menial or repetitive tasks, yet in reality doing those tasks poorly (Metters, 2008) yet having exceptional expertise in the most advanced technologies including software development and Sarbanes-Oxley auditing compliance (Can, Dogerlioglu, Sonmez, Yardimci, 2009). Outsourcing to save costs is a disaster waiting to happen from a cultural standpoint however (Rottman, Lacity, 2008) and needs to be considered only as an additional aspect to a strategic direction to build out IT over time and integrate it into the strategic business model of the company. Outsourcings confusion and lack of productivity as a cost reduction strategy is directly linked to the lack of trained employees these firms have doing the most manually repetitive tasks. The combining
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