March 2004 Archives
TPOSANA's discussion on outsourcing tries to give guidelines about when (and when not) to do it. The worst possible situation is when the people signing the contract are ignorant of the issues needed to understand such a contract. The larger the contract, the more likely it is that this will happen.
Robert X. Cringely's new column on EDS and the Navy and Marine Corp Intranet (NMCI) contract shows that the problem can go both ways. EDS's contracting people were commissioned on getting the contract signed, and were disconnected from the people that would do the work. As a result, they signed an unprofitable contract: