Outsourcing, the IT of 2015

The current revolution in enterprise software is only a preview of a much larger, more pervasive shift that will transform the global economy within the next decade. Service-oriented architecture and Web services are two of the more well-known elements of the maturation of distributed computing, which is changing the rules of the vaunted software development life cycle.

In short, we are on the way to becoming a real-time market for global human capital whose ascendancy will increase with the growth of the knowledge economy and global standards for work processes. If we classify economic value according to knowledge/information, manufacturing and agricultural products and services, the knowledge portion has been steadily increasing its share of the value chain, and this trend is accelerating. Of course, information technology facilitates the creation, distribution and sharing of knowledge.

What does this mean for outsourcing and offshoring? By understanding how standards-based technologies have combined to transform enterprise software, we can learn how the coming standardization of work processes will drive explosive demand for an always-on market for knowledge workers and real-time value chains.

Read a longer version of the article published in the Technology Executives Club Journal. Forthcoming next month, my point of view […]

The Revolution in Enterprise Software: Why It’s Key to Outsourcing

The adoption of object-oriented, distributed systems grew throughout the 1990s, and the systems are becoming the norm for global enterprises as of this writing. Distributed systems, in conjunction with the rapid growth of the Internet, signify a profound change in how software is built, managed, maintained and consumed, and this development facilitates outsourcing in several ways:

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The 3.x Economies

Much of what I write in this space will revolve around the new knowledge economy in which we increasingly find ourselves (no, I’m not talking about the “New Economy” of the 90s ;-). Therefore, I offer these thoughts on the 3.x economies in which we have lived.

The Knowledge Economy

A knowledge economy is fundamentally a new animal because its outputs are increasingly information-intensive services and “products.” Many of these products are infinitely scalable, like CDs, software or Webcasts. Selling additional “copies” of digital (music) is accomplished at virtually zero marginal cost for production and distribution. Of course, a knowledge economy also produces numerous industrial and agrarian goods, but the value of these goods is shifting toward information-intensive services that are related to the goods—away from the underlying goods themselves. Some examples are:

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