I remember the day like it was yesterday. Pac Man had finally arrived on the Atari 2600.  It was a clear and sunny day, but it was slightly brisk. My dad drove us down to the video store about three miles from our Michigan house. If I remember correctly, the price for the game was $24.99.  It was quite expensive for the day, probably equaling a $70 game in today’s market, but it was mine. There *was* no question about it. If you purchase a game, it’s your game… right?

You couldn’t be more wrong.  With all the licensing agreements in games today, you only purchase the right to play it. You don’t actually “own” the game. 

Today, game designers want total control over the money that comes in for a game. They add in clauses that keep the game from being resold, rented, borrowed, copied, etc. All of the content in the game, including the items you find that are specifically for you, are owned by the software developer. Why, you ask, do they do this? It’s all about the money.

This need for greed started years ago, when people started modifying current games on the market. One of the first games like this was Doom. There were so many third part mods made, but because of licensing agreement, none of these versions were available for resale. The end user, or you, had to purchase Doom before they could even install the mod.  None of these “modders” were allowed to make any money off their creation.

IT Outsourcing came to foray as a means for corporations to focus on critical business operations while having a specialized IT company take over the responsibility of managing the IT infrastructure and application development. For corporations especially in the developed countries, IT outsourcing provided two fold advantages, one was access to a highly talented pool of engineers and that too at a lower cost since countries like India were quickly growing their stature as an IT outsourcing hub.

IT Outsourcing is now as mainstream as ever and almost every leading organization outsources some or all parts of its IT infrastructure to a specialized company. It makes pure business sense and with tightening budget controls, IT outsourcing has become one of the strategic cost reduction driver for most organizations. Moreover, IT outsourcing is no more restricted to companies in USA & Europe outsourcing their IT projects to countries like India. Domestic companies within India itself actively use IT outsourcing including the Indian government like the India Post project given to TCS.

Is it then a no brainer that IT Outsourcing is critical to your business? Well, if it is cheaper and does not seem to have any inherent disadvantages why not!! Not really, IT Outsourcing despite proven benefits has its limitations and you should be cognizant be of the same before considering outsourcing your IT operations.

·         Limitations in estimating the actual cost of IT outsourcing:Let’s tackle the biggest driver of IT Outsourcing-Cost Savings. For anyone to estimate the cost savings from IT Outsourcing one needs to be able to predict the cost of outsourcing which then helps understand the cost savings from the same. Yes, at a higher level it is a matter of a simple $ per man-hour costs and IT outsourcing will appear to be cheaper in almost all cases. However, “hidden costs” are commonplace with IT outsourcing and it can be immensely difficult to accurately predict these hidden costs. For example, you need to be able to identify the costs of transitioning your in-house IT to an outsourcer, management overhead needed to manage the outsourcing relationship etc. In addition, IT outsourcing contracts are fixed at the start of the contract and as a result any additional requirement/change tends to be charged additionally. It is no surprise that IT requirements can change frequently and if your outsourcing contract doesn’t account for flexibility, you might be limited in the actual cost savings you might make. There is no surprise that there have been so many instances of IT outsourcing projects overshooting their budgets by a huge margin such as the one government shared services project going 500 million pounds over budget

Much of success is about performance. It’s about what we do and what we are able to inspire others to do. There are some simple performance principles I have learned in my life, and I want to share them with you.  They really bring success, and what it takes to be successful, into sharp focus. They are also the basis for developing and maintaining an expectation of success.

The Five Principles of Performance

1. We generally get from ourselves and others what we expect. It is a huge fact that you will either live up or down to your own expectations. If you expect to lose, you will. If you expect to be average, you will be average. If you expect to feel bad, you probably will. If you expect to feel great, nothing will slow you down. And what is true for you is true for others. Your expectations for others will become what they deliver and achieve. As Gandhi said, “Be the change you wish to see in the world.”

2. The difference between good and excellent companies is training. The only thing worse than training employees and losing them is to not train them and keep them! A football team would not be very successful if they did not train, practice, and prepare for their opponents. When you think of training as practice and preparation, it makes you wonder how businesses survive that do not make significant training investments in their people.

Actually, companies that do not train their people and invest in their ability don’t last. They operate from a competitive disadvantage and are eventually gobbled up and defeated in the marketplace. If you want to improve and move from good to excellent, a good training strategy will be the key to success.

Is it possible for anyone to give Microsoft a fair trial? The first half of 2012 is in the history books. Yet the firm still cannot seem to shake the public opinion as The Evil Empire that produces crap code.

I am in a unique position. I joined the orbit of Microsoft in 1973 after the Army decided it didn't need photographers flying around in helicopters in Vietnam anymore. I was sent to Fort Lewis and assigned to 9th Finance because I had a smattering of knowledge about computers. And the Army was going to a computerized payroll system.

Bill and Paul used the University of Washington's VAX PDP computer to create BASIC for the Altair computer. Certainly laughable by today's standards, it is the very roots of the home computer.

Microsoft became successful because it delivered what people wanted.