MBAs run IT and they have no clue about the real IT works is. If a contracting firm telling them they could save tons of money by out sourcing, they will believe whatever the salesman said. But in reality, as we had seem again and again. This kind of whole sales outsourcing only looks good on paper for the first year. And then the truth comes out and eventually they will find out it is costing more and have many problems. Good luck to whoever will be gone and whoever is the survives, the road moving forward is very bumpy no matter what happen.
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