PMcrunch

There is a great deal written about outsourcing today.  However, outsourcing is hardly anything new, but it comes in a new package and a new application.
 

In his article “Hard Outsourcing Questions” Mark, Mullally, PMP points out a number of different considerations for those considering outsourcing today.  They are good, and are applicable, for sure.  They highlight the fact that there are unique risks and uncertainties to the type of outsourcing that we commonly see today.
 

But at its core, outsourcing is merely asking the same old question of “make or buy”.  It has much broader connotations today because of the emotionally charged issue and effects of offshore outsourcing over the past few years in Information Technology, which was deemed to be a safe career haven. 
 

However, like any make or buy decision, it is a challenge to get to an apples to apples comparison.  Apples to apples, in the end, probably comes down to money - in whatever denomination you like.  For example, a company might have a project to manufacture steel stairs for installation in a building.  The “work package” of treads for those stairs is one item that is being considered for outsourcing.  That outsourcing can be done from a shop across town that has more specialized equipment and a streamlined process for manufacturing steel stair treads.  Or it could be from a shop in China.  These options carry different connotations and may awaken different emotions, but they are both nonetheless outsourcing, and both are part of a make or buy decision.

If we keep the perspective and are informed by history, we can recognize that what we are experiencing is less new and more familiar.  It is something that has been there for a long time, but simply looks different because of the nuances of a new or emerging situation.  Applying basic principles can lead us to success in outsourcing.
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John Reiling, PMP
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