Paying for criticism
The biggest problem I see with outsourcing is lack of criticism.
Ie: your own IT team will freely criticise management decisions and choices of technology etc.
Once you outsource it's a lot of "yes sir, no sir".
RBS also had a huge IT failure about 12 months after outsourcing to India (from memory) and despite government enquiry there was very little said at the end of the day. I agree strongly with other suggestions here that there needs to be some legislative penealty for companies who outsource then fail. They shouldn't be allowed to 'justify' it as being unrelated. The tests are just to black/white - whereas this is a complex phycological issue - it's not about IT skills - I'm sure TATA are great at that - it's about human ego and reward, same as how the GFC taught governments that they need to control how financial sales people are rewarded - the global IT crisis will eventually team politicians the same thing about they CIO's
Biting the hand that feeds IT
