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a small note on Governance and cost..

a small reflection on Governance and cost.

💡 * If you think knowledge is expensive, have you tried the opposite? 💡 * Misplace prudence eats up any benefit from economy of scale

This is a typical cost curve for IT expenses..

http://wiki.cantara.no/download/attachments/2065014/image1.gif

If we look at costs, think about this picture for consulting

Most organizations operate with the over-simplified an (average) price per head and negotiate this as low as possible - this is in-fact a version of the offshoring graph, save a bit in the short run, increases over time

http://wiki.cantara.no/download/attachments/2065014/image2.gif

We know from several studies that the productivity factor is 5-10 fold among developers

  • if we factor inn this in our hiring strategy, we are typically seeing this cost graph

http://wiki.cantara.no/download/attachments/2065014/image4.gif

so why do we not act smarter?