Outsource and be damned

This follow-up perspective on last issue's article that looked at the realities of outsourcing, takes the author further into the disadvantages and limited advantages of a system that at face value appears to have great attractions.

Few managers would admit they like the concept of outsourcing, even a well-executed contract may leave the organisation wondering, have they given too much away in the quest for an easy system upgrade and a short-term financial advantage.

Service providers claim reduced costs and customised service delivery.

However the reality and experience from the IT sector indicates that service providers subtly move clients to standardised services and reduce customisation so they can achieve SLA targets and profit goals.

Initial outsourcing discussions spark emotions within the organisation as they consider the lure of a vendor's glamour contract to take the short-term pain away.

Those that dare to challenge these early discussions with alternative solutions become labelled "part of the problem" and quietly sidelined as the outsource plan gains momentum.

Once this pivot point is reached the organisational innovation is dramatically diminished and diluted. The organisational pride, initiative and innovation that came from delivering to their own users specialist operational solutions that match precisely the user requirements are lost forever.

Even the most menial contributor from the organisation can drive new innovation based on operational knowledge and experience.

The deeper the outsource contract, the greater intellectual capital is stripped away from an organisation.

How many of us started our careers as the chief communications director? Not too many and if so, you could be pretty sure that some directions may be suspect to say the least.

Many of the most competent in the industry started at the other end; installing two-way radios, or as a green apprentice assisting an experienced system engineer sort out Intermod issues at a site, or perhaps on a radio bench trying to define what the product engineer had intended when they designed that singing front-end!

The best people in the industry today have not only a real understanding of the many facets of the material delivery of the technical solution but equally, the many operational essential deliverables that are involved in putting the right communications solution together.

Outsourcing has lead to many organisations losing the critical mass that delivered the people resource to ensure the long-term training and development of staff.

Importantly, this headroom ensured a people supply chain which allowed maturing staff to be rewarded with ever more senior roles.

In turn this would eventually enable them to effectively communicate operational requirements, so that, department heads and their financial controllers, could reliably take advice on what was really required - rather than perhaps what the outsourced supplier was dictating as their best cost solution.

Choosing to outsource may cause an organisation to lose highly industry-specific operational know-how which could be as basic as where an antenna should, or should not be fitted.

In its place may be a generic fit-out, totally controlled by operationally removed contractual stipulations.

A subsequent request to move a radio's key component just a few centimetres, may result in a number of site meetings, consultancy reports, contract variations and all that that entails and perhaps weeks of delays and end-user frustration.

Another result of the outsource process may be the loss of organisational pride that makes good organisations simply that.

Teamwork, the 'key thing' that two-way radio actually delivers, is what makes winning organisations.

When you start stripping uniforms from staff, diminishing career opportunities and creating a general environment of insecurity for those remaining, the sense of team quickly evaporates.

Where previously, members of the team would do 'whatever it takes' when the proverbial is about to hit the accelerant, now in its place may be adherence to official hours of work, overtime loading and job descriptions to define the next employee movement.

Being in the consultancy business, we are only too well aware of the growing demand for consultancy due to the "outsource or be damned" situation. The reality is that on many occasions those doing the consultancy were previously sitting on the other side of the desk and the organisation is buying back its time at market rates.

While this may return short-term know-how, it is only a matter of time before this resource either retires, or is absorbed into another industry and with no replacements being nurtured - there goes the neighbourhood.

While we understand the practical necessity for consultants to be engaged in a diverse range of tasks today, we believe the right role for consultancy in many larger organisations is to be used to verify the organisation's decisions, question its assumptions and to bring third-party perspective.

This vast knowledge base once enabled organisations to courageously undertake new system upgrades and force technology companies to push the boundaries of product developments.

With great pride many companies invested local R&D efforts into world class radio systems and products to meet the operational needs developed by our local major users.

The innovation demanded by these organisations delivered new products that were globally desirable and exportable. New jobs and careers were created and an industry thrived.

Our industry needs sophisticated and knowledgeable users that demand innovative radio solutions to fulfil their operational needs. Without them our market will slip into a black box one size fits all - beholden to outsourced providers.

System houses, dealers and manufacturers must present the marketplace with choice, value and support programs that, will allow large users to again make confident insource decisions.

Never before has our industry had at its disposal such a range of technologies and solutions available to address unique user needs and challenge the wave of wholesale outsourcing.

We feel due diligence demands consideration of the long-term benefits of in-sourcing your next radiocommunications project. But regardless of whether you are at the tail end of the outsourcing process or perhaps the start, keep your focus on these ABCs:

Assess your core operational requirements that are essential and non-negotiable and develop programs that will harness in-house knowledge, experience and capabilities to deliver a solution while getting external support for arms and legs where needed.

Be prepared to invest in the training and development of your talented people, so they can grow and contribute at all levels ensuring you can then implement best practice for your industry.

Consider in-sourcing key elements of any new project to keep the experience and knowledge within the organisation. Using specialist providers to supplement capability and transfer knowledge.