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Outsourcing IT needs in the corporate world has become extremely popular because it is cost-efficient and it gives IT resources to companies that may not otherwise be able to afford them. Another positive side effect of IT outsourcing is that it has brought many technology jobs back to the United States.
As convenient and patriotic as IT outsourcing has become, it also have several limitations that have caused many companies to re-think the idea of funding their own internal IT group. It is important for a company to be completely familiar with these limitations before developing any kind of company policy in regards to IT.
The Customer Could Outgrow The Outsource Company
When an IT outsourcing company first takes on a new client, the relationship is beneficial to both sides. But things can start to get inconvenient for the client when the client's business starts to outgrow the capabilities of the IT outsource group.
An IT outsourcing company can become entrenched in the daily routine of its clients, which is great at first. But when the IT company can no longer keep pace with the growth of its clients, then the clients are stuck trying to find a new solution and keep track of its own IT assets at the same time.
The IT Outsourcing Company Lacks The Necessary Technical Expertise
IT outsourcing clients like to believe that their support company knows everything there is to know about computers and the Internet. But every IT support company has its areas of expertise and they have the technical areas where they are not quite as strong. If the client starts to experience needs from the areas where the IT outsourcing company is not so strong, then that can become a significant business issue.
This problem can be amplified if the client is a small business experiencing growth. An IT outsourcing company is not as likely to bring on new personnel for a smaller client, which leaves the client without a solution.
The Client Losses A Measure Of Control Over Its Data
No matter how large or successful an IT outsourcing company may be, there will always be the limitation of client security and the protection of critical customer data. All it takes is one rogue employee of the IT outsourcing company to compromise all of the client's critical data.
Some IT outsourcing companies have safeguards put in place to try and prevent client data compromise, but those safeguards are limited by how much access the IT company has to the client network. In most cases, that access has to be comprehensive for the IT outsourcing company to be able to do its job.
Outsourcing IT responsibilities can take a lot of stress off of a client and allow that client to operate his business by focusing on his core competencies. But there are limitations to IT outsourcing that could make it necessary for a client to do his own IT support and pay the extra costs.
I suspect that many of you are familiar with the term "hard coding a value" whereby the age of an individual or their location is written into the condition (or action) of a business rule (in this case) as shown below:
if customer.age > 21 and customer.city == 'denver'
then ...
Such coding practices are perfectly expectable provided that the conditional values, age and city, never change. They become entirely unacceptable if a need for different values could be anticipated. A classic example of where this practice occurred that caused considerable heartache in the IT industry was the Y2K issue where dates were updated using only the last 2 digits of a four digit number because the first 2 digits were hard-coded to 19 i.e. 1998, 1999. All was well provided that the date did not advance to a time beyond the 1900’s since no one could be certain of what would happen when the millennia arrived (2000). A considerably amount of work (albeit boring) and money, approximately $200 billion, went into revising systems by way of software rewrites and computer chip replacements in order to thwart any detrimental outcomes. It is obvious how a simple change or an assumption can have sweeping consequences.
You may wonder what Y2K has to do with Business Rule Management Systems (BRMS). Well, what if we considered rules themselves to be hard-coded. If we were to write 100s of rules in Java, .NET or whatever language that only worked for a given scenario or assumption, would that not constitute hard-coded logic? By hard-coded, we obviously mean compiled. For example, if a credit card company has a variety of bonus campaigns, each with their own unique list of rules that may change within a week’s time, what would be the most effective way of writing software to deal with these responsibilities?
I’ve been a technical recruiter for several years, let’s just say a long time. I’ll never forget how my first deal went bad and the lesson I learned from that experience. I was new to recruiting but had been a very good sales person in my previous position. I was about to place my first contractor on an assignment. I thought everything was fine. I nurtured and guided my candidate through the interview process with constant communication throughout. The candidate was very responsive throughout the process. From my initial contact with him, to the phone interview all went well and now he was completing his onsite interview with the hiring manager.
Shortly thereafter, I received the call from the hiring manager that my candidate was the chosen one for the contract position, I was thrilled. All my hard work had paid off. I was going to be a success at this new game! The entire office was thrilled for me, including my co-workers and my bosses. I made a good win-win deal. It was good pay for my candidate and a good margin for my recruiting firm. Everyone was happy.
I left a voicemail message for my candidate so I could deliver the good news. He had agreed to call me immediately after the interview so I could get his assessment of how well it went. Although, I heard from the hiring manager, there was no word from him. While waiting for his call back, I received a call from a Mercedes dealership to verify his employment for a car he was trying to lease. Technically he wasn’t working for us as he had not signed the contract yet…. nor, had he discussed this topic with me. I told the Mercedes office that I would get back to them. Still not having heard back from the candidate, I left him another message and mentioned the call I just received. Eventually he called back. He wanted more money.
I told him that would be impossible as he and I had previously agreed on his hourly rate and it was fine with him. I asked him what had changed since that agreement. He said he made had made much more money in doing the same thing when he lived in California. I reminded him this is a less costly marketplace than where he was living in California. I told him if he signed the deal I would be able to call the car dealership back and confirm that he was employed with us. He agreed to sign the deal.
Although reports made in May 2010 indicate that Android had outsold Apple iPhones, more recent and current reports of the 2nd quarter of 2011 made by National Purchase Diary (NPD) on Mobile Phone Track service, which listed the top five selling smartphones in the United States for the months of April-June of 2011, indicate that Apple's iPhone 4 and iPhone 3GS outsold other Android phones on the market in the U. S. for the third calendar quarter of 2011. This was true for the previous quarter of the same year; The iPhone 4 held the top spot. The fact that the iPhone 4 claimed top spot does not come as a surprise to the analysts; rather, it is a testament to them of how well the iPhone is revered among consumers. The iPhone 3GS, which came out in 2009 outsold newer Android phones with higher screen resolutions and more processing power. The list of the five top selling smartphones is depicted below:
- Apple iPhone 4
- Apple iPhone 3GS
- HTC EVO 4G
- Motorola Droid 3
- Samsung Intensity II[1]
Apple’s iPhone also outsold Android devices7.8:1 at AT&T’s corporate retail stores in December. A source inside the Apple company told The Mac Observer that those stores sold some 981,000 iPhones between December 1st and December 27th 2011, and that the Apple device accounted for some 66% of all device sales during that period (see the pie figure below) . Android devices, on the other hand, accounted for just 8.5% of sales during the same period.
According to the report, AT&T sold approximately 981,000 iPhones through AT&T corporate stores in the first 27 days of December, 2011 while 126,000 Android devices were sold during the same period. Even the basic flip and slider phones did better than Android, with 128,000 units sold.[2] However, it is important to understand that this is a report for one particular environment at a particular period in time. As the first iPhone carrier in the world, AT&T has been the dominant iPhone carrier in the U.S. since day one, and AT&T has consistently claimed that the iPhone is its best selling device.
Chart courtesy of Mac Observer: http://www.macobserver.com/tmo/article/iphone_crushes_android_at_att_corporate_stores_in_december/
A more recent report posted in ismashphone.com, dated January 25 2012, indicated that Apple sold 37 million iPhones in Q4 2011. It appears that the iPhone 4S really helped take Apple’s handset past competing Android phones. According to research firm Kantar Worldpanel ComTech, Apple’s U.S. smartphone marketshare has doubled to 44.9 percent.[3] Meanwhile, Android marketshare in the U.S. dropped slightly to 44.8 percent. This report means that the iPhone has edged just a little bit past Android in U.S. marketshare. This is occurred after Apple’s Q1 2012 conference call, which saw themselling 37 million handsets. Meanwhile, it’s reported that marketers of Android devices, such as Motorola Mobility, HTC and Sony Ericsson saw drops this quarter.
Tech Life in Florida
| Company Name | City | Industry | Secondary Industry |
|---|---|---|---|
| Lender Processing Services, Inc. (LPS) | Jacksonville | Software and Internet | Data Analytics, Management and Storage |
| World Fuel Services Corporation | Miami | Energy and Utilities | Gasoline and Oil Refineries |
| SEACOR Holdings Inc. | Fort Lauderdale | Transportation and Storage | Marine and Inland Shipping |
| MasTec, Inc. | Miami | Business Services | Security Services |
| Health Management Associates, Inc. | Naples | Healthcare, Pharmaceuticals and Biotech | Hospitals |
| B/E Aerospace, Inc. | Wellington | Manufacturing | Aerospace and Defense |
| Roper Industries, Inc. | Sarasota | Manufacturing | Manufacturing Other |
| AutoNation | Fort Lauderdale | Retail | Automobile Dealers |
| Watsco, Inc. | Miami | Wholesale and Distribution | Wholesale and Distribution Other |
| SFN Group | Fort Lauderdale | Business Services | HR and Recruiting Services |
| Tupperware Corporation | Orlando | Manufacturing | Plastics and Rubber Manufacturing |
| AirTran Holdings, Inc. | Orlando | Travel, Recreation and Leisure | Passenger Airlines |
| WellCare Health Plans, Inc. | Tampa | Healthcare, Pharmaceuticals and Biotech | Healthcare, Pharmaceuticals, and Biotech Other |
| Lennar Corporation | Miami | Real Estate and Construction | Real Estate Agents and Appraisers |
| HSN, Inc. | Saint Petersburg | Retail | Retail Other |
| Certegy | Saint Petersburg | Business Services | Business Services Other |
| Raymond James Financial, Inc. | Saint Petersburg | Financial Services | Trust, Fiduciary, and Custody Activities |
| Winn-Dixie Stores, Inc. | Jacksonville | Retail | Grocery and Specialty Food Stores |
| Jabil Circuit, Inc. | Saint Petersburg | Computers and Electronics | Semiconductor and Microchip Manufacturing |
| CSX Corporation | Jacksonville | Transportation and Storage | Freight Hauling (Rail and Truck) |
| Fidelity National Financial, Inc. | Jacksonville | Financial Services | Insurance and Risk Management |
| Tech Data Corporation | Clearwater | Consumer Services | Automotive Repair & Maintenance |
| TECO Energy, Inc. | Tampa | Manufacturing | Chemicals and Petrochemicals |
| Lincare Holdings Inc | Clearwater | Healthcare, Pharmaceuticals and Biotech | Medical Supplies and Equipment |
| Chico's FAS Inc. | Fort Myers | Retail | Clothing and Shoes Stores |
| Burger King Corporation LLC | Miami | Retail | Restaurants and Bars |
| Publix Super Markets, Inc. | Lakeland | Retail | Grocery and Specialty Food Stores |
| Florida Power and Light Company | Juno Beach | Energy and Utilities | Gas and Electric Utilities |
| Ryder System, Inc. | Miami | Transportation and Storage | Freight Hauling (Rail and Truck) |
| Citrix Systems, Inc. | Fort Lauderdale | Software and Internet | Software and Internet Other |
| Harris Corporation | Melbourne | Telecommunications | Wireless and Mobile |
| Office Depot, Inc. | Boca Raton | Computers and Electronics | Audio, Video and Photography |
| Landstar System, Inc. | Jacksonville | Transportation and Storage | Freight Hauling (Rail and Truck) |
| Darden Restaurants, Inc. | Orlando | Retail | Restaurants and Bars |
| PSS World Medical, Inc. | Jacksonville | Healthcare, Pharmaceuticals and Biotech | Medical Supplies and Equipment |
training details locations, tags and why hsg
The Hartmann Software Group understands these issues and addresses them and others during any training engagement. Although no IT educational institution can guarantee career or application development success, HSG can get you closer to your goals at a far faster rate than self paced learning and, arguably, than the competition. Here are the reasons why we are so successful at teaching:
- Learn from the experts.
- We have provided software development and other IT related training to many major corporations in Florida since 2002.
- Our educators have years of consulting and training experience; moreover, we require each trainer to have cross-discipline expertise i.e. be Java and .NET experts so that you get a broad understanding of how industry wide experts work and think.
- Discover tips and tricks about Oracle, MySQL, Cassandra, Hadoop Database programming
- Get your questions answered by easy to follow, organized Oracle, MySQL, Cassandra, Hadoop Database experts
- Get up to speed with vital Oracle, MySQL, Cassandra, Hadoop Database programming tools
- Save on travel expenses by learning right from your desk or home office. Enroll in an online instructor led class. Nearly all of our classes are offered in this way.
- Prepare to hit the ground running for a new job or a new position
- See the big picture and have the instructor fill in the gaps
- We teach with sophisticated learning tools and provide excellent supporting course material
- Books and course material are provided in advance
- Get a book of your choice from the HSG Store as a gift from us when you register for a class
- Gain a lot of practical skills in a short amount of time
- We teach what we know…software
- We care…
Interesting Reads Take a class with us and receive a book of your choosing for 50% off MSRP.
