I was in El Corte Inglés today. This company came out of nowhere in Spain to become the leader in selling goods. Everything started as an small tailor’s shop. They were the best, they gave the best service in terms of handling, results and manners. That was in the 90’s. Recently, I heard from a worker that they outsourced their tailoring services, what made El corte ingles what they are. Before, their clients did not need to pay any tailoring as extra charges but nowadays you have to pay it since it was oursourced. Until that point, everything could be OK. The thing I was surprised is that reducing costs by oursourcing the tailoring service also impacted in the result. I went to buy a suit and wanted some adjustments. I had to come back THREE times to El Corte Ingles to finally get the proper adjustment, but not because the seller failed, no, he was very good. The tailor’s did not make the changes properly TWO times. You can imagine why. The pursue of reducing costs became bread for today, hungry for tomorrow.
The same thing happens in software. For outsourcing services, you have to be prepared for that. You reduce cost, yeah, and you create sneaky problems that if you are not aware of them, it will impact your company in the future. Outsourcing is a double edge weapon.
Losing the identity is the worst thing that can happen to a company.