The Changing Face of Offshore Programming

[charrison]

linkage

Yes, it's still the cheaper option -- but the price differential is shrinking fast, and the hidden costs can be fierce

After nine months of exposure to the overseas outsourcing market, I'm ready to give an update on the realities of outsourcing for small businesses. This is an emotionally charged issue for a lot of people in the U.S., so let me start by saying up front that the results are mixed. Like a lot of larger businesses, I've discovered a number of hidden risks and costs. While I don't think those issues will end the trend of sending jobs to cheaper labor markets, I do think the wholesale enthusiasm for outsourcing overseas is quickly waning.

 

[Bowfinger]

Interesting article. Seems well-balanced to me.

 

[Miramonti]

I think there will be a lot to learn from outsourcing at this point (which the article describes pretty well) and its going to go thru an evolutionary stage - not just from those companies doing the outsourcing, but also those firms in other countries evolving to meet the special needs of such outsourced services.

While it mentioned labor costs may have closed the gap a bit in some markets already, that will probably only be short-term until their labor market expands to take advantage of the new opportunities in the respective markets (ie more people studying programming abroad, more people moving to where the new jobs are etc.)

Over the long run I think the issue is here to stay, particularly for large companies.

 

[Genesys]

perhaps theyll bring the jobs back home and let other countries decide how to employ their own peoples?

 

[dmcowen674]

Originally posted by: Genesys
perhaps theyll bring the jobs back home and let other countries decide how to employ their own peoples?

One can only hope.

The fact that Dell was forced by it's core Big Business to bring back support personell and that apparently the Operations Centers are costing more than anticpated, maybe just maybe it will be a passing failed experiment.

Just like Big Corp Execs, to play with the lives of those below them. Brings a whole new meaning to India's Caste system. Speaking of the Caste system that is exactly what has developed in the U.S. thanks to the Elitist Corp Execs buying out the Government. I am sure that is the next thing that you saw in here in P&N discussed first and winds up written in some big outfit like Boston Globe or LA Times.