Don't outsource your competency away

published on 2021/05/03

Now, I could summarize my entire presentation with this awesome paper. This is a proprietary internal secret, Boeing paper and Boeing at some point, outsourced almost everything and they ran into trouble, they had this long before the 737 MAX. Boeing was already busy outsourcing everything. And when they built the 787 Dreamliner, they found that all they were doing was drawing designs and then handing them to manufacturers. They were even telling the manufacturers look, we only put up requirements, we don’t actually tell you what to do just build us this 787 Dreamliner.

And it didn’t work. And they nearly went bankrupt over it. And in the course of a lawsuit, this paper was filed. It’s online, you can read it. And in this an engineer, Dr. L.J Hart-Smith analyzed the process of outsourcing production.

Basically, a key insight there is that when people say we are no longer going to build this ourselves, we’re going to have someone else build it for us, is that what is left of your company becomes ever smaller.


We are a technology consultant company. We build software for diverse range our institutions and we wholeheartedly agree with this assessment. You have to have your in house technology team if you can. Firms like us can speed up your development plans but you need people in your own organization that understand how technology assists your day to day business operations.

Continue to invest in your technology team so they grow and develop into something amazing. It will be worth it.