Outsourcing Architecture?

[ITLifer]

Working for a fairly large company as an Architect. We have a lot of tech leads/developers in India. Just found out that the CIO is surreptitiously setting up a whole architecture group out there as well. Imagine our surprise when an architect from India was suddenly produced in front of the group to give us a presentation on an "Ideal Architecture".

Needlessly it's caused quite a stir in the architecture group - we do not know if we will last in the company for another 6 months.

Has anyone seen a model where the architecture function has been successfully outsourced? Has the Architecture function been effectively commoditized in other places?

[DG9]

Well I'm sure it makes sense to the powers that be in that it is the next place to reduce costs.  I never thought it was a good idea to farm out all of our financial and medical data either, but so much for what I think.

[benali72]

Well, I don't know whether you'd call it outsourcing of architecture...

but what I've seen several times is bringing in consultant/advisors from a big 8 (?) accounting firm or sometimes a consulting firm and having them massively change an IT shop (part of which has to do with architectural issues).  Now in these cases they outsourced design power to outside firms but the firms were all US-based. But the amazing thing to me was ... who would outsource such critical fundamental design to an outside party? A party without specific business understanding? Results were usually not good... for these reasons.  I always felt the outside firms had some excellent feedback to contribute that inside sources couldn't or wouldn't come up with, but to give away ALL such power is crazy, IMHO.

[PhilFromNY]

Are the CIO or CFO new? If so anything can happen as they try to make their case for how awesome they are. Usually the less the talent, the more ridiculous the changes. If the CFO is new and their previous gig was with someone like McKinsy then you should assume everything will be outsourced.

[I D Shukhov]

I've read that R&D is being outsourced, so why not system architecture?   Like R&D it's knowledge work, and all knowledge work is fair game.  It's a cost to the company and reducing costs improves earnings.

[ITLifer]

Yes - the CIO  is new and yes - he came from consulting.

[ilconsiglliere]

When I was at big telecom in the late 90s first they outsourced the production and operations support, than they did the programmers, than the project managers, than the architects and finally finance.

The best part is that they outsourced almost all of it to Big Bl*e except for the programming which went to C*C. Eventually they realized that outsourcing the architects was a bad move because the architects of course recommended Big Bl*e solutions with Big Bl*e equipment with actual implementation done by Big Bl*e.

Its like the proverbial chicken being in the hen house.

When I was at my last full time job at the Company You Dont Keep they laid off/outsourced architecture and engineering to India. I was in the first wave of that layoff back in February.

In the past they told us all that we have to move up the so-called "value chain". What I am seeing now is that the outsourcing is moving up the value chain as well. Dont kid yourself, this is about $$ pure and simple. It they can get an architect in India for 15/hour do you think they arent going to do it? Of course, this labor arbitrage.

I realized this years ago about moving the value chain but am having a heck of a time finding a job. I have solid PM, BA and financial skills and cant find a job. There are just too many candidates for every single position now. Companies are typically getting 200 resumes for every job.

My advice is be prepared for changes. A new executive coming from the consulting arena is the worst thing that can happen.

[pxsant]

Companies are typically getting 200 resumes for every job.

That's all?  The last guy I talked to in HR said they were getting 300 to 500 resumes for every job.

[DG9]

And even if you make it to interviews, you will need to read eveyone's mind and prove good enough to be of great use, but not be a threat to any individual's ego or position, oh, and a "good fit" with each and every personailty on the "team".  Then if HR doesn't freeze the position, fill it from within, find someone cheaper and/or younger you may get an offer...

[Walter Mitty]

I once heard of a credit card company that outsourced "credit and collections".  This was presented by a PR person from the company responding to an investigative report that showed that they were forward dating their receipts in order to collect unearned late fees. 

"We didn't know about it because it was all done by an outside firm.  As soon as we found out about it, we fired that firm, and got another one."  In other words, we're good guys; it's the people who run our business who are the bastards. 

As far as I'm concerned, a credit card company that outsources credit and collections has outsourced everything but the brand name.  I think there's a lot of that going around, and not just in the banking industry.

[ilconsiglliere]

Companies are typically getting 200 resumes for every job.

That's all?  The last guy I talked to in HR said they were getting 300 to 500 resumes for every job.

It may be as high as that. I know that for my last position at Ma B*ll they got 188 resumes. And they had ridiculous requirements as well.

[choppedwood]

"We didn't know about it because it was all done by an outside firm.  As soon as we found out about it, we fired that firm, and got another one."  In other words, we're good guys; it's the people who run our business who are the bastards.

Or, like the CEO's of all the banking companies who had "no idea" their company was writing all those bad mortgage loans.  Aren't you the same guy who was claiming credit for those profits on the upside?

I come from a blue collar company with a very long history and a ton of people had been there for 20, 30 years and more in some cases.  They never had layoffs and while being in a low margin business made money every year although they cut it close a couple of times.  When 2009 hit, and the son took over from the father, all bets were off.  I'd say any time you have a transition from anyone who didn't come from the inside, or there is something awkward about the transition, then all bets are off.