Feeds

Let's all go to India

Offshore IT: bowing to the inevitable?

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Offshoring, which has been popular in the financial services industry for years, is arguably the biggest threat to indigenous IT careers in North America and Europe. IT workers will want to try to prevent the mass exodus of jobs to cheaper labor markets, but such protests are likely to have minimal effect in the end.

Hardly a week goes by without one of the big IT players like Microsoft, Intel, IBM, Dell, Sun Microsystems, or Hewlett-Packard announcing plans to set up a hardware or software engineering center in a popular offshoring region. Tech support and call center functions have also been moved offshore in an effort to cut costs.

The Washington Alliance of Technology Workers, an IT union, has posted a presentation purportedly made by Brian Valentine, senior vice president of the Microsoft Windows division. He explained that offshoring means a company can extend its workday across several time zones to work virtually around the clock in all parts of the globe. This can shorten time to market, particularly if offshored programmers are checking code that is written in the home market. Code is written one day and validated before the start of the next day.

But the real issue with offshoring is the cost savings it can bring to all types and sizes of companies. IT organizations can tap into the vast engineering resources in India - Mr Valentine said that there are 450,000 software engineers in India, with another 70,000 added every year. He also said that Indian programmers can deliver quality work for 50% to 60% of the cost of a programmer back in the US. Because of the lack of indigenous jobs in their own countries, those working in offshoring operations in India, China, and so forth are happy to take short-term jobs. What choice do they have?

And what choice will IT organizations have to fight the temptation to offshore? The availability of cheap, deep IT talent is something that they will all want to take advantage of. Workers in the IT industry will want to organize to try to stop this, but the pursuit of the almighty profit will probably prevail in the end.

© datamonitor logo

Datamonitor is offering Reg readers some of its technology research FOC. Check it out here.

Internet Security Threat Report 2014

More from The Register

next story
The cloud that goes puff: Seagate Central home NAS woes
4TB of home storage is great, until you wake up to a dead device
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
Intel offers ingenious piece of 10TB 3D NAND chippery
The race for next generation flash capacity now on
Want to STUFF Facebook with blatant ADVERTISING? Fine! But you must PAY
Pony up or push off, Zuck tells social marketeers
Oi, Europe! Tell US feds to GTFO of our servers, say Microsoft and pals
By writing a really angry letter about how it's harming our cloud business, ta
SAVE ME, NASA system builder, from my DEAD WORKSTATION
Anal-retentive hardware nerd in paws-on workstation crisis
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Choosing a cloud hosting partner with confidence
Download Choosing a Cloud Hosting Provider with Confidence to learn more about cloud computing - the new opportunities and new security challenges.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.