Here’s some random stories taking various points of view on the outsourcing trend:
TechDirt: Actual Numbers On Who Benefits From Offshoring – Mostly a summary of a McKinsey report which says many of the same things I already covered in my post about the Business 2.0 article on outsourcing. An interesting number cited by McKinsey is that for every $1.00 sent offshore the US is expected to receive $1.12 in benefits to the economy.
BusinessPundit: Why Outsourcing IT may be a Bad Idea – I guess it comes as a shock to some people that just sending an IT project overseas doesn’t mean that it will be successful. Not really surprising considering it’s been a long thrown around statistic that 50% of all IT projects fail.
News.com: Study: Salary gloom ahead for IT workers – While not technically a story about outsourcing one would have to assume that outsourcing is creating pricing pressures on the job market for IT talent. The most significant sentence in the article is: In recent months, reports have not painted a consistent picture about future IT spending.
News.com: Offshoring and beyond – Another News.com story and more research from McKinsey. Actually a pretty interesting take on the outsourcing trend. First, it seems many companies are actually experiencing productivity gains by outsourcing. One British bank was reporting 20% more transactions being processed with 3% more accuracy. The other part is in how labor costs may impact decision making. In the US the highest cost is usually the labor costs but in India, for instance, labor is one of the cheapest parts of the total cost so many companies are moving things that used to be automated back to manual processes in order to increase their return.
News.com: When IT jobs disappear – Yet another News.com article. This one is a re-hash of most of the more basic articles on outsourcing. Jobs are going away. If you want to keep a job in this new environment obtain new skills. Blah, blah, blah.
News.com: Outsourcing not always a money saver – And yet another News.com story. Citing a Gartner study they seem to conclude that not everyone who outsourced is getting the big cost savings they thought they would get.
Related posts:
- Did We Learn Nothing From The Dotcom Boom? I just ran across this article on Bluff about Tell...
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Hi, my name is Bill Rini and this is my poker blog. I've been blogging about poker and the poker industry since around 2003-ish. Like most people I started out playing poker as entertainment in home games whenever we wanted to sit around and smoke cigars, drink beer, and eat pizza, and needed a good excuse. I started playing online shortly after the first online card rooms opened and it wasn't long before I was playing 20, 30, or even 40 hours a week or more. One day I received a phone call about a program manager position at Tiltware which was the company that consulted to Full Tilt Poker on software development and marketing. After Tiltware I spent about 2.5 years working at Party Poker where I was the poker room manager.
{ 2 comments… read them below or add one }
People… If you haven’t learned by now that the media is creating all this fear just like they do everything else then you deserve to be scared…
I remeber when the computer for came out the media did they same thing with using fear… It makes good stories people…
I rmeber one article that siad “telvision like boxes taking away our jobs?” LOL
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