Negotiating Your Worth
American Indians Entering The Outsourcing Game

What Is The Future Of Outsourcing/Offshoring?

So many articles written by what seem to be intelligent people and so many opinions on the good vs. evil, right vs. wrong, is it sustainable or not.

We hear about offshoring being the new thing, we hear about salaries being driven down in the US, then we hear about baby-boomers retiring and the lack of workers will drive up salaries for the good, ones, but if there is lack of talent does that fuel the offshoring fire?


I confess, I don’t know nor yet have an educated enough opinion. Here is what I do know, if you are a tech person you really need to learn some business skills and vice versa.

Now that you feel enlightened by my simple theory here is some rhetoric from “experts”, or so they seem to think.

In this corner wearing blue trunks we have a study from McKinsey Global Institute written about in It says that by 2008 4.1 million service-side jobs will be outsrouced. They then mention 4.1 is out of 160 million. I grant that the study says 13% of IT jobs will be affected but I come back to how large in terms of % is the baby boomers in IT?

In this corner wearing green trunks we have an article from Outsourcing Journal questioning if offshoring is sustainable. While Indian firms margins are around 20% they are starting to deal with wage inflation and attrition. There answer to this is very similar to US firms years ago. They are locating offices to Tier 2 locations and reviewing business models.

In this corner wearing white trunks we have this Wall Street Journal article saying that projects are getting sent overseas to save money and time. Much of the work is automation and testing of the technology.

We then have a corner wearing red, whit and blue trunks, (getting the analogy yet?) from VNU Network in the UK. Prudential after benchmarking a data center deal with Cap Gemini is bringing the operation back in house. A consultant from Deloitte is quoted as saying some companies are realizing deals should never have been done in the first place.

Finally in the same corner we have this article from Legal Week. In an effort to keep tax dollars and jobs at home US state and federal laws are being passed limiting the amount and kind of outsourcing/offshoring that can be done. It will be interesting to see how these laws stand up to constitutional tests as stated in the article.

Moral to this story? I am not sure I have one. Maybe that common sense needs to be on the front burner when thinking about security, costs, time, etc.


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