Role of Architecture in these times of Outsourcing

Outsourcing in the IT world is a reality. Given that the IT department has always been viewed as a cost center, more and more companies are looking at outsourcing, to contain and to better manage IT costs.

In my view, Architecture is a strategic capability. There is tremendous risk in outsourcing this capability. Outsourcing a strategic capability will deplete the associated knowledge within an organization. It will impact an organization's ability to leverage its strategic capabilities to quickly react to new opportunities. If the Architecture capability does not exist within an organization or if it is not mature, work with the vendor(s) to develop this capability.

Also, outsourcing contracts are never open-ended. They are for a specific duration. If SLAs are not met, organizations have the option to not renew the contracts. Given that, it only makes sense to retain strategic capabilities and to leverage them in contract negotiations.

The following paragraph is from an article by IBM that talks about the benefits and the risks associated with outsourcing.

"The IT experts brought technology standardization and disciplined project methodologies to their clients. Indeed, all the firms valued learning from their vendors about standard technology components and project methodology. But they also noted that, while vendors were learning about their business, vendors could never know their business as well as their own people. Thus, the firms needed to retain—or develop—a competency in applying technology to meet strategic goals."