There is a period of time where organisations outsource IT during the dark ages. Unknowingly, organisations strip away their ability to digitise and transform their key competencies. When the era of digital transformation comes, many struggle to reclaim lost knowledge or rebuild the IT team.
What cause the outsourcing?
IT remains a cost center for many organisations. Thus, they become the selling point of outsourcing and cost saving. Developers are thought to be unnecessary and first to be outsource. Yet, it is weird to see common skills like field IT being retain in-house because they are users facing. As a result, IT are left with coordinators and user facing functions.
Without the implementation skills, IT becomes reliance on vendors to develop and automate the business competencies. Business IT alignment are made on incumbent vendor capabilities. The knowledge drain retard innovation and IT become operational. In many case, systems become outdated.
Digital transformation shifts the trend towards co-sourcing model as organisations brings back in-house capabilities to align business and its core competencies. This phenomenon will stop until we see a repeat of history in outsourcing again. Only capable leaders will do it right and insource your own IT key competencies.