Outsourcing 2.0

It was only a matter of time before Outsourcing 2.0 was coined (even Hollywood has adopted the version numbers with the latest installment of Die Hard being Die Hard 4.0).

Frank J. Casale, Founder & CEO of The Outsourcing Institute, has published a white paper defining what he believes are the drivers behind Outsourcing 2.0. To quote directly:

There are three centrifugal forces driving outsourcing today: universal pain in all dimensions of  outsourcing; changes in who is outsourcing and how it is done; and, the corresponding Web 2.0 movement that is created a strong tail wind that’s helping to propel outsourcing into its next iteration.

I specifically like two points that Frank is making:

  1. The rise of do-it-yourself companies who go after outsourcing bypassing middlemen and focusing on a very specific activity that could be done BETTER, not necessarily cheaper.
  2. Web 2.0 and its influence on software development: agile development, user input, etc.


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