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How Tech Loses Out over at Companies, Countries and Continents - Bert Hubert's writings
a day ago
- The decline of European telecom companies from innovators to branding and financing firms, impacting their technical capabilities.
- Outsourcing too much can lead to a point of no return, where companies lose technical talent and ability to innovate.
- Toaster manufacturing example illustrates how outsourcing all components can leave a company with only branding and logistics, hindering innovation.
- Boeing's 787 Dreamliner troubles show that outsourcing production without retaining expertise can lead to failure.
- European companies have outsourced core technical activities, resulting in a lack of control and innovation.
- The separation of thinking from doing in companies stifles innovation; retaining technical expertise is crucial.
- Shareholders and consultants drive outsourcing, prioritizing short-term profits over long-term technical capabilities.
- Technical people contribute to the problem by avoiding management roles and not advocating for technical core functions.
- If a company is in decline, technical individuals should consider leaving for smaller, innovative firms or starting their own ventures.
- Smart outsourcing involves focusing on core innovations (like firmware) while outsourcing non-essential components (like fuses).
Jouw tech of mijn tech: kies snel - Bert Hubert's writings
a day ago
- Organizations often spend years hesitating about outsourcing ICT, leading to the departure of skilled staff and eventual forced outsourcing after failures.
- A quick, deliberate decision using clear criteria is crucial to avoid prolonged drama and retain core capabilities.
- Three key criteria for deciding whether to keep a task in-house: its importance to the business, its role in future innovation, and the difficulty of doing it well.
- Examples like SIDN (.NL domain) show that core competencies directly tied to an organization's mission should stay in-house, while non-core tasks like catering are better outsourced.
- Prolonged indecision destroys morale, drives away top talent, and ultimately leads to reactive outsourcing, which is a poor choice.
- An ideal solution is a small, elite in-house tech team handling critical systems while outsourcing non-core functions, but this is hard to achieve after years of conflict.
- Organizations that have outsourced too much can become 'master outsourcers' (like Odido) but must fully commit and still require skilled personnel for oversight.
Your tech or my tech: make up your mind quickly - Bert Hubert's writings
a day ago
- Organizations often delay outsourcing decisions for years, leading to the loss of valuable ICT employees who become frustrated justifying their roles.
- A clear set of criteria (importance, future innovation potential, and difficulty of doing it yourself) helps make quick, solid decisions on what to outsource and what to keep in-house.
- Outsourcing core functions, like .NL domain management, can be risky; companies should retain a small, valued team of ICT professionals to handle essential tasks and oversee external partners.
- Hesitation creates a self-fulfilling crisis where incidents force outsourcing, rather than a conscious choice, undermining morale and driving away talent.
- Successful examples like Odido (T-Mobile NL) show that full outsourcing requires embracing the role of a 'master outsourcer' with strong focus on marketing and sales, but still needs qualified staff.
- Government bodies outsourcing email to US-based providers (e.g., Microsoft) raises sovereignty and security concerns, highlighting the difficulty of rational decisions under pressure.
Btw: Software, turnkey, beheerd, as a service - Bert Hubert's writings
a day ago
- The Dutch Tax and Customs Administration plans to outsource VAT processing to an American company, raising concerns about control and national sovereignty.
- On March 19, a parliamentary committee meeting will discuss this plan, with hopes for reconsideration of the decision.
- The debate has shifted from using American software to full management by Americans, including servers, as 'VAT-as-a-service'.
- Systems for critical tasks range from self-programming (level 0) to total outsourcing (level 5), each with different levels of control and dependency.
- Self-programming offers maximum understanding and flexibility but requires significant investment and responsibility.
- Purchasing software with self-installation provides some independence but still requires expertise and risks from vendor changes.
- Turnkey solutions with integration reduce understanding and increase dependency on the vendor for operation and modifications.
- Managed services (level 4) involve turnkey delivery with ongoing maintenance, leaving the client unable to take over operations and fully dependent on the vendor.
- Fully 'as a service' (level 5) runs software at the vendor's site, ceasing immediately if service stops, as seen with Microsoft 365 in many government agencies.
- The VAT solution proposed for the Tax and Customs Administration aligns with level 4 or 5, risking loss of control over €80 billion in annual revenue to American control.
Ben je van de IT of niet? - Bert Hubert's writings
a day ago
- A broken toilet in a large organization leads to weeks of meetings and blame-shifting because responsibility is unclear, while a colleague could fix it in 10 minutes.
- In contrast, a technical company quickly repairs a similar problem using in-house tools and expertise, avoiding all the bureaucracy.
- The Dutch government is like the first organization: it is heavily dependent on external IT contractors and locked into contracts with US suppliers, making it unable to fix issues promptly.
- The government's proposed Dutch Digital Service (NDD) initially focused on advice but now plans to hire its own IT staff to regain control.
- The core message is that the government must treat IT as a core activity, invest in internal expertise, and stop relying solely on external parties for critical systems.

outsourcing

How Tech Loses Out over at Companies, Countries and Continents - Bert Hubert's writings

Jouw tech of mijn tech: kies snel - Bert Hubert's writings

Your tech or my tech: make up your mind quickly - Bert Hubert's writings

Btw: Software, turnkey, beheerd, as a service - Bert Hubert's writings

Ben je van de IT of niet? - Bert Hubert's writings