Pleasing Wall Street is a Poor Excuse

(From Harvard Business Review)
Outsourcing, in and of itself, isn't responsible for the erosion of America's high tech infrastructure. The short-term thinking that led to a lot of bad outsourcing decisions is the root cause. And short-term thinking isn't a problem confined to the executive suite.

Managers who focus on maximizing short-term profits end up driving out things that generate long-term value — like R&D. They use all sorts of excuses when they make those decisions, including the need to please Wall Street and create shareholder value. But they're just excuses for poor thinking.

There is a need of business leaders who have a respect for technical issues even if they don't have technical backgrounds. Technical understanding should be a core competency of any company.