Build, buddy or buy? IT sourcing strategies
IT talent availability is scarce. Too scarce. And we all know it. Or do we?
7 July 2020 – Almost weekly companies knock on my door to find them the optimal location for an IT center. Desired headcounts vary from 80 to 500 FTE. Wanted-skills relate to software development, hardware maintenance and 2nd line support.
But going 100% captive (building the capacity yourself) is not the only option. Certainly not with war for IT talent raging globally.
Outsourcing, or buddying with a specialty provider, is up for reconsideration. Firstly because many providers have finally understood that customer centricity is everything to their growth, if not survival. Secondly because resilience-focused companies must spread their sourcing risks. The business case for setting-up a multiple-site captive IT organization versus partial outsourcing works for only the biggest of corporations.
Unexpectedly, just of few of my client initially consider buying capability/capacity as an option. Of course, M&As have their risks. But so do the two other options. But it may just be the most viable way to quickly achieve direly needed expansion. And sometimes in little-know locations. Behemoth Microsoft offers the most recent example. On July 6th it acquired Movial in Iasi, a city tucked-away in Romania’s North-Eastern corner.
Emerging Europe, for one, offers more hidden gems like Movial. Expertise and capacity at fair – if not low – delivery cost levels.
Finding these hidden gems requires stamina, sound understanding of local business practices and openness of mind.
Today that might just seem the perk of larger corporations. But others should not wait lest they’d want to fight for the leftovers.