Yes, you can outsource too much
Posted by Pete McBreen 05 Jan 2011 at 09:01
Interesting article in the sloan review on outsourcing too much. Admittedly it is about the design process in the car world, and it is short on details, but the overall implications are clear.
It seems that the business world is now waking up to the fact that it is overall systems performance that matters, not just local optimization of a single point function or module. The problem seems to be that as you Separate the Design from the Implementation the local knowledge you lose is much worse than the small gain you make in financial efficiency of the outsourcing.