Why did legacy outsourcing make companies sick?

So, thinking of getting to know about why legacy outsourcing makes company get sick,

Let’s first get to know what Outsourcing to companies means?

So, outsourcing is nothing but a work done from a professional freelancer, or a team of professionals who works on the given project by the companies/businesses.

So thus, companies outsource to get their work done in lesser time, hassle-free, stress-free, and by saving their work time, and getting all these done in a very favorable way.

And now speaking of in an actual way

That is Outsourcing is the type of business practice through which we can hire a party outside of a company to create goods that traditionally were performed in-house by the company’s employees, staff, and workers.

So, now what does legacy outsourcing mean

In traditional times, companies used to work with a sort of personals who used to work for the company to develop, build, create a certain software or project for a company,

And companies thinking that cost-cutting was just bringing in offshore build project to them and use as their own, but many such companies were doing the same at that time, that’s almost a decade before it was an attractive path for them though and that was nothing but outsourcing legacy for the company

, This type of shortsighted cost-cutting pressure is the reason so much software development has gone offshore for the companies

But recently, as they progressed tremendously they realized that cost-cutting and cheap things aren’t good for them as well as for others too, and also the developer or the persons working on for the companies used to burn more cash and wasn’t efficient for the company too, like that of highly skilled also the time they used to get the results was nimble,

So, what happened actually, companies that signed up for outsourcing advantages wound up paying outsourcing’s hidden costs

Also,

Average dev quality: -

The highly skilled professionals moved away, and started working as independent Contractors, or just independently.

Also, currently, the average dev prefers low impact paths to be outsourced developers.

Lost Skills: -

We all know, as software becomes increasingly critical to business survival, its core naturally expands. which eventually in a traditional way, has Weakened, as well as Failure to continuously exercise and improve development practices atrophies in-house development skills.

And yes, Geoffrey Moore’s follow-up to the classic strategy book, Crossing the Chasm, warns that organizations must retain what is “core” to their business and consider outsourcing the rest

True In turn, organizations must regularly reassess their businesses to ensure that their core expertise is not farmed out to outsourcing.

Incentive or billings: -

Paying for project or software development by the hour is misaligned to develop faster, better code.

When hours are the billing yardstick by which businesses/Companies pay, they tend to add up faster than a debutante’s charge card during a shopping spree.

So, in general, the cost of outsourcing easily gets increased leaving quality behind.

Ramkrishna M