Originally posted by original PM
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And you cannot buy a competitive advantage from the market. You can only buy the market average. You have to invest to create an advantage and that applies whether your are a one-man PSC or a multi-national.
So the first companies to offshore AND make it work efficiently probably gained an advantage, lowering the cost of the IT and allowing them to take on bigger projects.
But now all their rivals have followed suite. So it's no longer advantageous to follow the current model. It is the market average.
So to regain an advantage they need to do something different. For example, in-sourcing OR adopting SaaS at scale.
In the beginning only the forward thinking companies will change. The majority will maintain the status quo ... but eventually they will be forced to adopt the "new model" ( whatever that turns out to be ) because if they don't they will be at a disadvantage.
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