Comments on: Outsourcing Catch-22 http://www.lifebeyondcode.com/2007/08/19/outsourcing-catch-22/ Personal and professional development for technology professionals. Fri, 19 Mar 2010 12:04:46 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Bage Anderson http://www.lifebeyondcode.com/2007/08/19/outsourcing-catch-22/comment-page-1/#comment-1813 Bage Anderson Mon, 20 Aug 2007 15:35:50 +0000 http://blog.lifebeyondcode.com/2007/08/19/outsourcing-catch-22/#comment-1813 Clinton's observations are correct as are the scenerios proposed by Rajesh. There are no easy answers to the delimia facing corporations already involved in offshore outsourcing. Increasingly, corporations are finding that there are hidden costs associated with outsourcing to countries such as Pakistan and India, not to mention language, cultural and time zone barriers for effective customer service. In fact, some corporations before entering into the offshore outsourcing fray are considering a new business model as an alternative - rural sourcing. Rural Sourcing is the model of taking call center and software support for a corporation to the rural regions of the US and taking advantage of the untapped pool of IT talent there. Partnerships between economic development agencies and institutes of higher learning bring high tech centers to cities like Abilene, Texas where those who would like a career in IT without the hassles of the big city can have the best of both worlds - pay and a slower paced lifestyle. The aforementioned barriers to successful customer service are also eliminated. Clinton’s observations are correct as are the scenerios proposed by Rajesh. There are no easy answers to the delimia facing corporations already involved in offshore outsourcing. Increasingly, corporations are finding that there are hidden costs associated with outsourcing to countries such as Pakistan and India, not to mention language, cultural and time zone barriers for effective customer service. In fact, some corporations before entering into the offshore outsourcing fray are considering a new business model as an alternative – rural sourcing.
Rural Sourcing is the model of taking call center and software support for a corporation to the rural regions of the US and taking advantage of the untapped pool of IT talent there. Partnerships between economic development agencies and institutes of higher learning bring high tech centers to cities like Abilene, Texas where those who would like a career in IT without the hassles of the big city can have the best of both worlds – pay and a slower paced lifestyle. The aforementioned barriers to successful customer service are also eliminated.

]]> By: Doug Withau http://www.lifebeyondcode.com/2007/08/19/outsourcing-catch-22/comment-page-1/#comment-1812 Doug Withau Mon, 20 Aug 2007 15:22:59 +0000 http://blog.lifebeyondcode.com/2007/08/19/outsourcing-catch-22/#comment-1812 Perfect political speak. I have read the quote three times. Is Mrs. Clinton in favor of protection, or in favor of globaliaation. I would never expect her to be 'against' any topic where a normal person may have an opinion. Read "The World is Flat". Better, get it on CD. It is a big long book, but Friedman lays out the outsourcing, and off shoring arguments very thoughtfully. India is not a worry. We are already seeing engineers and other skilled workers job hopping. This is causing their pay to rise. The economics of outsourcing to India are not as attractive as they were 4-6 years ago. China is a much greater concern. The Chinese do not have a free economy. They will hold salaries and people static. They can manipulate the salary to keep the work cheap, and keep the work coming to China. It is possible to work in a sweat shop writing code just as easily as making Nikes. The threat of going back to the farm and starving is just as real. Blah, blah. Whatever the consequences, protectionism never ever, ever works. Here is an arguments for the US National health care plan that Mrs Clinton is proposing. This is the only one that makes any sense to me. China has no health care insurance. It all comes from the government. India also has a socialist health care system. That means the per employee expenses for a corporation are less. US companies would be able to compete if they did not have to pay for employee health care. Please,do not think that the national health care system is on the Democratic agenda for the "little guy". It is for corporate cost savings and a better bottom line. Read about the WalMart health plan. The majority of the cost for the uninsured temp workers is paid by the taxpayer. WalMart's profits soar! Perfect political speak. I have read the quote three times. Is Mrs. Clinton in favor of protection, or in favor of globaliaation. I would never expect her to be ‘against’ any topic where a normal person may have an opinion.
Read “The World is Flat”. Better, get it on CD. It is a big long book, but Friedman lays out the outsourcing, and off shoring arguments very thoughtfully.
India is not a worry. We are already seeing engineers and other skilled workers job hopping. This is causing their pay to rise. The economics of outsourcing to India are not as attractive as they were 4-6 years ago.
China is a much greater concern. The Chinese do not have a free economy. They will hold salaries and people static. They can manipulate the salary to keep the work cheap, and keep the work coming to China. It is possible to work in a sweat shop writing code just as easily as making Nikes. The threat of going back to the farm and starving is just as real.
Blah, blah. Whatever the consequences, protectionism never ever, ever works.
Here is an arguments for the US National health care plan that Mrs Clinton is proposing. This is the only one that makes any sense to me. China has no health care insurance. It all comes from the government. India also has a socialist health care system. That means the per employee expenses for a corporation are less. US companies would be able to compete if they did not have to pay for employee health care. Please,do not think that the national health care system is on the Democratic agenda for the “little guy”. It is for corporate cost savings and a better bottom line.
Read about the WalMart health plan. The majority of the cost for the uninsured temp workers is paid by the taxpayer. WalMart’s profits soar!

]]> By: Frase do dia http://www.lifebeyondcode.com/2007/08/19/outsourcing-catch-22/comment-page-1/#comment-1802 Frase do dia Mon, 20 Aug 2007 04:17:39 +0000 http://blog.lifebeyondcode.com/2007/08/19/outsourcing-catch-22/#comment-1802 [...] Hillary Clinton in Outsourcing Catch-22 [...] [...] Hillary Clinton in Outsourcing Catch-22 [...]

]]> By: BlogReader http://www.lifebeyondcode.com/2007/08/19/outsourcing-catch-22/comment-page-1/#comment-1801 BlogReader Mon, 20 Aug 2007 03:36:18 +0000 http://blog.lifebeyondcode.com/2007/08/19/outsourcing-catch-22/#comment-1801 <i>You are a $100M company and all your competitors are outsourcing and gaining some sort of advantage. </i> Depends on what kind of advantage they are gaining. My opinion is that companies should keep their core competency in house and outsource most of the rest (provided that you already have a good system for managing that). Are they making gains as they are paying less for labor and can charge less? Do you really want to get into that game? You are a $100M company and all your competitors are outsourcing and gaining some sort of advantage.

Depends on what kind of advantage they are gaining. My opinion is that companies should keep their core competency in house and outsource most of the rest (provided that you already have a good system for managing that).

Are they making gains as they are paying less for labor and can charge less? Do you really want to get into that game?

]]> By: Raja Choudhury http://www.lifebeyondcode.com/2007/08/19/outsourcing-catch-22/comment-page-1/#comment-1800 Raja Choudhury Mon, 20 Aug 2007 02:28:03 +0000 http://blog.lifebeyondcode.com/2007/08/19/outsourcing-catch-22/#comment-1800 I think Clinton is on to a very subtle point here that has to be considered seriously. With India emerging as a KSO center as well as already being the major KPO center for US companies, the fear that R&D and more sensitive jobs will shift to India is a valid and politically sensitive one. The US' lack of investment in IT and science education may well need to it becoming the worlds biggest consumer of K leading to the creative classes much touted by Peters and Pink. But this is still a way off and there will be some years of transitioning pain during which time India will make a convenient scape goat. Perhaps NASSCOM and indian KSO/KPO companies should learn to use the US spin and PR machines better by making concerted a effort to allay fears here and to invest some of the Indian profits here in sensitivity, giving back and philanthropy. I think Clinton is on to a very subtle point here that has to be considered seriously. With India emerging as a KSO center as well as already being the major KPO center for US companies, the fear that R&D and more sensitive jobs will shift to India is a valid and politically sensitive one. The US’ lack of investment in IT and science education may well need to it becoming the worlds biggest consumer of K leading to the creative classes much touted by Peters and Pink. But this is still a way off and there will be some years of transitioning pain during which time India will make a convenient scape goat. Perhaps NASSCOM and indian KSO/KPO companies should learn to use the US spin and PR machines better by making concerted a effort to allay fears here and to invest some of the Indian profits here in sensitivity, giving back and philanthropy.

]]> By: Engenharia da Computação :: Frase do dia #18 http://www.lifebeyondcode.com/2007/08/19/outsourcing-catch-22/comment-page-1/#comment-1799 Engenharia da Computação :: Frase do dia #18 Mon, 20 Aug 2007 02:24:59 +0000 http://blog.lifebeyondcode.com/2007/08/19/outsourcing-catch-22/#comment-1799 [...] Hillary Clinton in Outsourcing Catch-22 [...] [...] Hillary Clinton in Outsourcing Catch-22 [...]

]]> By: Nagesh Belludi http://www.lifebeyondcode.com/2007/08/19/outsourcing-catch-22/comment-page-1/#comment-1797 Nagesh Belludi Mon, 20 Aug 2007 02:13:51 +0000 http://blog.lifebeyondcode.com/2007/08/19/outsourcing-catch-22/#comment-1797 Outsourcing need not be the sole enabler of competitive advantage. In Senator Clinton's comments, is there a mention of manufacturing jobs moving to China or Vietnam as well? How about a distinction between outsourcing and off-shoring? Most discussions on outsourcing lack a broader perspective. The world has experienced, more so in the last decade, an enormous shift of consumption patterns. Offshore sources of lower-cost services (e.g. India) and manufacturing (e.g. China) are today the world's biggest consumer markets. Would America tolerate restricted access to these markets in exchange? Outsourcing need not be the sole enabler of competitive advantage.

In Senator Clinton’s comments, is there a mention of manufacturing jobs moving to China or Vietnam as well? How about a distinction between outsourcing and off-shoring?

Most discussions on outsourcing lack a broader perspective. The world has experienced, more so in the last decade, an enormous shift of consumption patterns. Offshore sources of lower-cost services (e.g. India) and manufacturing (e.g. China) are today the world’s biggest consumer markets. Would America tolerate restricted access to these markets in exchange?

]]> By: University Update - Hillary Clinton - Outsourcing Catch-22 http://www.lifebeyondcode.com/2007/08/19/outsourcing-catch-22/comment-page-1/#comment-1796 University Update - Hillary Clinton - Outsourcing Catch-22 Mon, 20 Aug 2007 01:48:58 +0000 http://blog.lifebeyondcode.com/2007/08/19/outsourcing-catch-22/#comment-1796 [...] Clark Outsourcing Catch-22 » This Summary is from an article posted at Life Beyond Code on Sunday, August 19, 2007 [...] [...] Clark Outsourcing Catch-22 » This Summary is from an article posted at Life Beyond Code on Sunday, August 19, 2007 [...]

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