IT Outsourcing came to foray as a means for corporations to focus on critical business operations while having a specialized IT company take over the responsibility of managing the IT infrastructure and application development. For corporations especially in the developed countries, IT outsourcing provided two fold advantages, one was access to a highly talented pool of engineers and that too at a lower cost since countries like India were quickly growing their stature as an IT outsourcing hub.

IT Outsourcing is now as mainstream as ever and almost every leading organization outsources some or all parts of its IT infrastructure to a specialized company. It makes pure business sense and with tightening budget controls, IT outsourcing has become one of the strategic cost reduction driver for most organizations. Moreover, IT outsourcing is no more restricted to companies in USA & Europe outsourcing their IT projects to countries like India. Domestic companies within India itself actively use IT outsourcing including the Indian government like the India Post project given to TCS.

Is it then a no brainer that IT Outsourcing is critical to your business? Well, if it is cheaper and does not seem to have any inherent disadvantages why not!! Not really, IT Outsourcing despite proven benefits has its limitations and you should be cognizant be of the same before considering outsourcing your IT operations.

·         Limitations in estimating the actual cost of IT outsourcing:Let’s tackle the biggest driver of IT Outsourcing-Cost Savings. For anyone to estimate the cost savings from IT Outsourcing one needs to be able to predict the cost of outsourcing which then helps understand the cost savings from the same. Yes, at a higher level it is a matter of a simple $ per man-hour costs and IT outsourcing will appear to be cheaper in almost all cases. However, “hidden costs” are commonplace with IT outsourcing and it can be immensely difficult to accurately predict these hidden costs. For example, you need to be able to identify the costs of transitioning your in-house IT to an outsourcer, management overhead needed to manage the outsourcing relationship etc. In addition, IT outsourcing contracts are fixed at the start of the contract and as a result any additional requirement/change tends to be charged additionally. It is no surprise that IT requirements can change frequently and if your outsourcing contract doesn’t account for flexibility, you might be limited in the actual cost savings you might make. There is no surprise that there have been so many instances of IT outsourcing projects overshooting their budgets by a huge margin such as the one government shared services project going 500 million pounds over budget

How Can Managers Work More Efficiently with IT?

Would you rather work under someone who is an excellent developer but lacks people skills or leadership capabilities - or for someone that has excellent people skills, communicates well, and is a great leader but has limited understanding of productive coding practices? That’s not to say that the choice is one or the other but in many professional situations it does.

Managing an IT staff comes with numerous challenges, especially if the manager has no previous experience with the coding necessary for completing the project. Managing a business and IT's execution of tasks vary greatly in required skill sets, but it's important to find a cohesive and cooperative middle ground in order to see a project to its end. To fully grasp the intricacies of IT's involvement in the project at hand, managers can do the following to help further their efforts.

Get a basic understanding of coding and technical practices necessary for the project at hand by taking the time to research and practice enough to get a grip on the concept. This will allow managers insight on what their IT folks are really working on daily. Expertise in a programming language is not required, only an overview of the stuff that matters, i.e. understanding the concept of OOP (Object Oriented Programming.) Having this knowledge cannot be overlooked and will gain respect among multiple spectrums in the organization.

I suspect that many of you are familiar with the term "hard coding a value" whereby the age of an individual or their location is written into the condition (or action) of a business rule (in this case) as shown below:

if customer.age > 21 and customer.city == 'denver'

then ...

Such coding practices are perfectly expectable provided that the conditional values, age and city, never change. They become entirely unacceptable if a need for different values could be anticipated. A classic example of where this practice occurred that caused considerable heartache in the IT industry was the Y2K issue where dates were updated using only the last 2 digits of a four digit number because the first 2 digits were hard-coded to 19 i.e. 1998, 1999. All was well provided that the date did not advance to a time beyond the 1900’s since no one could be certain of what would happen when the millennia arrived (2000). A considerably amount of work (albeit boring) and money, approximately $200 billion, went into revising systems by way of software rewrites and computer chip replacements in order to thwart any detrimental outcomes. It is obvious how a simple change or an assumption can have sweeping consequences.

You may wonder what Y2K has to do with Business Rule Management Systems (BRMS). Well, what if we considered rules themselves to be hard-coded. If we were to write 100s of rules in Java, .NET or whatever language that only worked for a given scenario or assumption, would that not constitute hard-coded logic? By hard-coded, we obviously mean compiled. For example, if a credit card company has a variety of bonus campaigns, each with their own unique list of rules that may change within a week’s time, what would be the most effective way of writing software to deal with these responsibilities?

Once again Java tops C as the number one sought after programming language on the internet.  According TIOBE Programming Community Index for February 2013 and five search engines: Google, Bing, Yahoo!, Wikipedia, Amazon, YouTube and Baidu, Java regained its position after being bumped by C in May 2012.

Despite the recent urging by the U.S. Department of Homeland Security of computer users to disable or uninstall Java due to a flaw in Runtime Environment (JRE) 7, Java, has increased its market share of all languages by (+2.03%) in the past six months. The jump in Java’s popularity does not come as a surprise as the Android OS claims massive success in the mobile space.  The top twelve programming languages listed in the index are:

1.  Java
2.  C
3.  Objective-C 
4.  C++
5.  C#
6.  PHP
7.  Python
8.  (Visual) Basic
9.  Perl
10.  Ruby
11. Java Script
12. Visual Basic.NET

Also rising, Python and PHP which are competing to becoming the most popular interpreted language.