Businesses taking advantage of outsourcing by insourcing outsourcers.

Another software supplier bought by customer

Standard Life has paid £42m to acquire sales automation software maker Focus Solutions.

The move is another example of a big business taking over a supplier to guarantee it gets the most out of software.

The London Stock Exchange bought Sri Lankan software supplier Millennium IT back September 2009 when it decided to replace its core trading platform.

These are examples of businesses wanting to take advantage of the skills and IP of suppliers while retaining control in-house.

Owning the supplier gives the customer the resources required to support the software and control of the software’s development. With business critical applications full outsourcing is a step too far.

It also means that when changes need to be done to the software they will be quicker because the skills will be in-house and therefore there is no need to communicate what is required to a supplier. After all you might not be the supplier’s to priority.

 

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