!!! IT Evolution : A resistance !!!

Now and then a man's mind is stretched by a new idea or sensation, and never shrinks back to its former dimensions.

Evolution is the change in the heritable characteristics of biological populations over successive generations. These characteristics are the expressions of genes that are passed on from parent to offspring during reproduction. Evolution may be defined as any net directional change or any cumulative change in the characteristics of organisms or populations over many generations.

Darwin's Theory of evolution is a framework by which we understand the diversity of life on Earth. But there is no equation sitting there is Darwin's 'Origin of Species' that you apply and say, 'What is the species going to look like 100 years to 1000 years?'

The evolution process works in all areas, even in the IT field as well. The initial stage of IT evolution started in the early 1980s. Outsourcing was not formally identified as a business strategy until 1989. However, most organizations were not self-sufficient; they outsourced those functions for which they had no competency internally.

The latest research shows that along with growing the industry continues to evolve past the traditional ‘cost-saving’ motivations to more ‘benefits based’ motivations.

Technological evolution is the result of our desire to lead a better life.

Traditionally cost saving has been the biggest motivation for engaging an outsource team, this is changing. Cost-saving is still the top motivation at 59%, coming in a close second is the ability for businesses to focus on core business functions. Whilst it’s important to operate cost-effectively to ensure sustainability and success, it is also very important for your business to be efficient.

Moving process-driven tasks offshore allows your onshore team to focus on the core business functions that generate income and encourage growth. Some other Motivations that came up: -

1.     Solving capability issues

2.     Enhancing service quality

3.     Implementing outsourcing was critical to business needs

4.     Access to intellectual capital

The current stage in the evolution of outsourcing is the development of strategic partnerships. Until recently it had been axiomatic that no organization would outsource core competencies, those functions that give the company a strategic advantage or make it unique.

We were in a discussion about these terms of the IT evolution since our last few articles. If you would like to pick those conversations up, the links are below this article.

Innovation is a combination of different ideas and contributions of different minds.

Outsourcing traditionally has meant having work performed by an outside party, which is now changing to Co-sourcing. Co-sourcing has been defined as an outsourcer and client melding their human resources to accomplish the client’s work. This is the current & future trend of IT services.

Many of the world’s former top companies have shrunk, floundered, become irrelevant, or been gobbled up by their rivals. Almost 90 percent of companies that were around and flourishing in 1955, for instance, have either perished, are forgotten, or are no longer major players. Resisting or ignoring the importance of innovation is one of the most effective ways to commit ‘business suicide’, and organizations need to be on top of their game more than ever to avoid falling by the wayside. Here’s a list of the most notable examples of companies that didn’t put innovation first – and paid the price. Here are a few examples: -

1.     Kodak: the biggest film company in the world loses business to fear

2.     Hummer: brawny status symbol turns into an automotive pariah

3.     Blockbuster: from iconic video rental brand to death at the hands of Netflix

4.     Polaroid: instant paper photos make way for digital slideshows

The struggles of these brands are illustrative of how complicated it can be for leaders to change fixed mindsets, balance priorities, change processes, and focus on innovation. But organizations that don’t respond to changing markets or fail to acknowledge trends, invariably miss out on opportunities, risk losing their share of the market, and ultimately face their demise.

In earlier periods, cost or headcount reduction were the most common reasons to outsource. In today’s world, the drivers are often more strategic and focus on carrying out core value-adding activities in-house where an organization can best utilize its core competencies.

So, these days Co-sourcing is advisable for processes that an organization does not want to completely allocate to an external provider. It reviews the main characteristics, benefits, and pitfalls of this type of co-outsourcing, along with some case evidence showing how some organizations had approached it.

We will discuss this further in my next article. Be connected ….

Article 1: - Staff Augmentations; One of the Smartest Business Model.

Article 2: - IT Staff Augmentation Benefits.

Article 3: - When and why to flip the coin?

Article 4: - The Original Breed Selection.

Article 5: - IT Ecosystem!!! Adapt the Changes?

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