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So let's say about 1 US release every other year.
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In 2007 they moved to a new vendor model and outsource development to "save money". The outsourced team would be about 33% cheaper (projected) than combined US / Indian team that was working on the ATMs.
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Haza! |
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So let's just assume the cost per year was $1,000,000 for in house development. It wasn't but let's just use round numbers. That means that a US Release (ignoring everything else) cost about $1,750,000 (7 years / 4 releases * $1 Million per year).
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Now let's say that outsourcing saved everything they thought it would (ha ha). The cost of a US release is now (given the same constraints) $3,300,000 (5 years * ($1Million per year * 66%)).
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That, obviously, doesn't include the "Cost of Lost Opportunity" since your release cycle has moved from 21 months to 60 months. Nor the "Cost of Non-Conformance" since the new ATM software doesn't do what the old one did (Ability to Set Account Preferences).
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Great Job Brownie.
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Because, of course, outsourcing always saves money. The Brainiac that decided this has long since been given a big ass bonus and left the company.