IT Outsourcing System Is Broken, How Can Service Providers Fix It?
Source: The Outsource Blog View: 543 Date: 2012-03-31

Andrew Wasser’s perch affords him a broad view of the IT outsourcing industry. Wasser serves as associate dean of the Heinz College’s School of Information Systems and Management at Carnegie Mellon University (CMU), where a third of the graduate students studying applied business and information technology are refugees from the IT services industry. He has oversight over many of CMU’s business projects that are commissioned by a virtual who’s who of the outsourcing industry — providers, clients and consultancies. And, as a veteran financial services CIO and director of CMU’s CIO Institute, he has an intimate understanding of the outsourcing
practitioner’s point of view.

From his multidimensional perspective, one thing is clear: The outsourcing system is broken. Heck, if you go by the old saw that defines insanity as doing the same thing over and over again and expecting different results, it’s downright crazy. The vendors say they are strategic partners, but they are in fact neither strategic nor partners. Both providers and customers say they want to create more business value and innovation, but neither is making the changes necessary to do that.
CIO.com talked to Wasser about what ails the outsourcing industry — from talent gaps and process devotion to closed-off clients and poor communication — and what, if anything, could turn things around.

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