Random Thoughts, Bizz GyanFebruary 14, 2007 3:13 am
Before a couple of years from now, I started reading a lot of business leadership inspiration kind of stuff. The Jack Welch, Lee Iacocca, Lou Gerstner kind of stuff. As I read books after books, it started appearing how the effect of factors such as work-culture, knowledge of company values, deep impacts of management and company leaders were one of the most important and contributing factors to success of the great companies.
However, working here at one of my company’s client site (lets call it C) has kind of confused me to a certain extend. At C, most of the IT related work is outsourced (not just to India for cost savings but to other IT services provider companies in US as well). So, every project involves as many as half a dozen teams from different companies meeting together to work. Even the managers for C are contractors who would work here for a period and move on.
The benefit that C extracts out of this is slim company structure with minimal fat layers. So once a project is over or a technology is out of date, its not C’s head ache to take care of these people. And this is not an uncommon structure - infact most companies prefer this model.
But, at the same time it is very apparent that each of the participating vendors try to keep an edge over each other at all times and in process, end up giving top performance. C need not take up all the head ache of keeping close track of all the things - the vendor managers do that out of desire to bring in more and more business.
Now, all this brings into my mind a few questions:
1. If shrewd business desire can bring in so much of push to performance - isnt outsourcing in this way a better deal? And yes, where’s the limit to stop outsourcing things? Even the project and program managers are contractors these days.
2. How are things such as team spirit, common goals, common culture, etc handled or work in such a model?
3. Is the company probably giving up long term goals for short term objective of minimizing fat layer and keeping its structure cost effectively slim?
Opinions and thoughts are more than welcome!