by Susan Cramm Andy Grove penned a fascinating commentary about the impact of outsourcing on American job creation, and the subsequent ability to innovate in the sectors that have been outsourced. He challenges the belief that as long as knowledge work stays in the United States, it doesn't matter what happens to factory jobs. Grove believes that, "not only did we lose an untold number of jobs, we broke the chain of experience that is important for technological evolution." Grove makes a good argument that, over time, companies lose the ability to innovate in the sectors they outsource. Does this argument apply at a lower level to IT outsourcing? Consider whether or not this statement has merit: With extensive outsourcing, over time, companies lose the ability to innovate IT. Successful outsourcing requires strong internal leadership. Question is, how can an organization attract, develop and retain IT-smart leaders in an environment where many of the developmental assignm...
from Rudy M. Harahap's Notes (a PhD in Performance Management Systems)