Outsourcing Roundup
Posted by Bill Rini @ 4:11 amIf you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
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.
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COMMENTS / 2 COMMENTS
Tom added these pithy words on Feb 20 04 at 7:02 amPeople… 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
Piero added these pithy words on Dec 21 04 at 7:45 am
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