Is Offshore Outsourcing Good or Bad for the US Economy

Here is an interesting article on outsourcing [link removed, article no longer available] from the Seattle Post-Intelligencer.

It seems the economists are still trying to come to agreement on whether outsourcing causes short or long term dislocations in the US job market.

Some interesting statistics are mentioned, such as a prediction of over 200,000 jobs lost each year until 2015, which is “a trivial problem in the context of the normal chrun of the U.S. economy, where about 7 million jobs were gaind and lost in each of the last four quarters.”

Unfortunately the article’s conclusion is that “Education and reeducation is an investment we can’t afford to outsource.” Of course not, especially since the author of the article is from academia.

But since we are messing up the education thing bad enough the first time through the system, why give them another shot and more money to squander?

How about a little entrepreneurship instead of “reeducation”?

Critical Offshore Outsourcing Skillset for US IT Professionals’ Survival

Here is an article that shows offshore outsourcing is here to stay. Many interesting insites on China and India, however this part about how Wipro’s capability to manage teams that span the globe was most interesting.

This is the kind of offshore outsourcing skills IT professionals need to develop to safeguard, or even enhance their careers.

Take outsourcing firms like Wipro and Infosys, which both count dozens of U.S. tech companies among their customers. Initially, the firms won contracts strictly because the country’s pool of low-priced software engineers offered tremendous savings for companies that needed new software.

But now they are offering more-sophisticated — and profitable — services and moving up the technology value chain.

“This is no longer about renting people and buildings,” said Vivek Paul, chief executive of Wipro Technologies and vice-chair of parent company Wipro Ltd.

The company’s deep pool of engineering talent and experience on managing collaborative teams located on opposite sides of the globe has helped it pioneer an extremely efficient way to design, code and test software.

You can read the entire article on Investors.com [link removed, article no longer available].

Only 24% Of Outsourced Software Goes to India

With the screaming about all the American IT jobs moving to India, you would never guess that only 24% of the software development that is outsourced is done in India. Where does it go first? To the USA, which gets 40%.

Read the press release on the survey by Evans Data Corporation [Link removed, full story no longer available].

Wipro’s Vivek Paul Is Listed in The TIME/CNN 25 Business Influentials

“The TIME/CNN 2004 Global Business Influentials have released the list of their honorees for 2004. The honorees are a new breed of business leaders who have redefined the way business is done, with innovative management strategies and a commitment to transparency, clear accountability and even helping change society along the way.”
[Link deleted, full story no longer available.]

Tech Pay Increases For IT Workers With Key Skills

Found an interesting article on salaries for US information technology people [Link removed, full story no longer available]:

“Pay for IT professionals with key skills is on the rebound after several years of decline, according to a new study released Thursday by research firm Foote Partners.

“The study, which examined IT salary data for about 45,000 IT workers from nearly 2,000 North American and European employers, showed that talent-retention fears, offshore outsourcing disappointments, and aggressive hiring by consulting firms is pushing up pay for several skills areas, including application development, networking, groupware, and messaging.”

Outsourcing is an Opportunity for IT Professionals

Interesting article from The Register:

The British Computer Society says offshoring is now a fact of life but represents an opportunity for UK IT professionals as well as a threat…
BCS chief executive David Clarke said: “The challenge for British professionals now is to gear up for the rapid globalisation of the IT services industry that is well underway. Traditional IT skills such as software development have become globally ubiquitous and a narrow focus on technical skills and their application will not help tomorrow’s professionals. But all too often, IT staff can underestimate their business knowledge and expertise too.”

You can read the entire article here: BCS says skills beat outsourcing.