Digital Shift & Accelerated Disruption. Episode 1: IT outsourcing or in-house development, the battle.

The big trend in the 1990’s and 2000’s for companies was to outsource their IT, as IT was considered by lots of companies as a cost center. Often, IT teams were thus attached to the Chief Finance Officer as a “support” function for the company. Outsourcing IT meant that companies and C-suite didn’t have to bother any more to manage people and technical issues that sound like coming from Mars to them, they just had to follow the bottom line in the budget. But by adopting this approach, they lost any chance to master their systems and identify how to generate value from their systems instead of just considering them as expenditures. Companies that chose to follow this path clearly missed out the technological revolution and opportunities to create value from the use of technologies itself in the past few years. So companies should take a step back and think about their strategy of outsourcing or developing in-house, not only with a cost approach (which is all the more often incomplete because of hidden associate costs).

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Digital Shift & Accelerated Disruption. Episode 0: Reborn

Early 2000’s and the Internet bubble: at that time, promising (or not) startups were creating new services, new offers disconnected from “traditional” companies. On the one hand, “traditional” companies in automotive, energy, transportation, retail, banking… On the other hand, web companies providing free search, free content… Two worlds that seemed rather independent from each other, two economies that seemed to be disconnected from each other. Traditional companies were still dominating the global economy.

About ten years later, the situation started to change dramatically, in every region of the world.

Map of the world with digital

For the past few years, we’ve witnessed accelerated disruptions in many areas of economy, and big traditional companies have been challenged on their own core business. Digital-born players have taken significant market shares in the traditional industries:

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