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Parasitic Outsourcing


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Outsourcing to organisations with strong hierarchical structures means inviting poor quality, greater delays and infrastructure hassles. Agile "flash mob" teams of proven skilled workers are far better once understood well. Publicly available proof of skills should be treated on par with traditional HR interview / testing methods.

Published in: Technology, Business
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Parasitic Outsourcing

  1. 1. Parasitic Outsourcing The REAL problem with outsourcing
  2. 2. Parasitic Outsourcing Common opinions: "Outsourcing robs jobs" "Outsourcing reduces quality" "Outsourcing increases delay" True. Can't argue against those. But there is more.
  3. 3. Parasitic Outsourcing Company A wants work W done. But wants it cheap. Enter outsourcing to Company B. "Just one level of delegation"? Nope!
  4. 4. Parasitic Outsourcing Total Work = Work W + Communication effort + Infrastructure effort + Decision making effort + Dependencies + More people, away from source
  5. 5. Parasitic Outsourcing Enter sub-contracting to C Work W ... + 2 x Communication effort + 2 x Infrastructure effort + 2 x Decision making effort + 2 x Dependencies + More people, further away
  6. 6. Parasitic Outsourcing What about the money? W costs to $100 2 employees = $50 each A is not very happy 2 employees happy.
  7. 7. Parasitic Outsourcing Outsourcing, one level: 1 middleman (agent/company) 2 remote employees. $50 to middleman $25 to 2 employees. Middleman ONLY TALKS!
  8. 8. Parasitic Outsourcing If middleman has a local clout, 5 remote contractors. Still, $50 to middleman $25 to 5 contractors. Work quality = ? 5 contractors' morale = ? Anyone happy?
  9. 9. Parasitic Outsourcing Coordination = ? Understanding of problem = ? Motivation to work = ? Customer? Workers? Users? Exploitation. Only Middleman is happy
  10. 10. Parasitic Outsourcing Workers have multiple bosses. Satisfaction = ? Decision nodes double. Mismanagement multiplies. Middleman is CEO of shop that hires contractors. His tangible input? ZERO.
  11. 11. Parasitic Outsourcing Alternatives? Local Employees. Direct over web. VOIP / Collaboration / Video Conf Open source - customization Individuals over corporations
  12. 12. Parasitic Outsourcing Two Problems: Trust and Quality. Why trust only brands? Why trust fat corporations? Why not try individuals? Ask contractors to prove quality. Hire individuals with proven abilities - open source coders.
  13. 13. Parasitic Outsourcing "Open sourced HR" Public, crowd-sourced hiring. Coder profile on Ohloh / Social networking Instant "mob teams" ("agile")
  14. 14. Parasitic Outsourcing Public profiles. Highly visible skills. SourceForge marketplace. Not trustworthy enough?
  15. 15. Parasitic Outsourcing Ignorance of open source = Pay more for lesser quality. Visit online developer communities more often.
  16. 16. Parasitic Outsourcing Outsourcing to corporations = more bloat & less quality Don't do parasitic outsourcing. Reduce middlemen.
  17. 17. Thanks!