Feeds

Let's all go to India

Offshore IT: bowing to the inevitable?

  • alert
  • submit to reddit

7 Elements of Radically Simple OS Migration

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.

Best practices for enterprise data

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
VMware builds product executables on 50 Mac Minis
And goes to the Genius Bar for support
Multipath TCP speeds up the internet so much that security breaks
Black Hat research says proposed protocol will bork network probes, flummox firewalls
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Microsoft's Euro cloud darkens: US FEDS can dig into foreign servers
They're not emails, they're business records, says court
Microsoft says 'weird things' can happen during Windows Server 2003 migrations
Fix coming for bug that makes Kerberos croak when you run two domain controllers
Cisco says network virtualisation won't pay off everywhere
Another sign of strain in the Borg/VMware relationship?
prev story

Whitepapers

7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?