Posts Tagged ‘CIO Magazine’

Offshoring: DO NOT Stop Sending IT Jobs Overseas

September 16, 2010

My response (and this is also posted in comments section of  George Tillmann‘s article/post on

Offshoring: it’s Time to Stop Sending IT Jobs Overseas

The answer: DO NOT place a moratorium on offshoring!

Henry Ford drove the “Buggy Whip” and “Horse Cart” manufacturers out of business due to his invention of the assembly line and developing a product that could be purchased by the masses. The people who were designing and manufacturing “Buggy Whips” needed to retool their skill sets in order to be successful in a new market/economy.

I am sure that the owners of the Horse Cart and Buggy Whip manufacturers hoped that Henry Ford’s automobile would not succeed so they could continue on the status-quo. Unfortunately, similar to Henry Ford, offshoring is here to stay.

In order for US companies to be competitive in the world economy what we will need to do is retool our IT department’s skill sets!

A Near-Sourcing trend in 2010 for the U.S.?

January 7, 2010 recently published its predictions for 10 trends in 2010 (December 2009).  Chief among the “good news” is that expectations are that the market for outsourcing in 2010 will improve with the general economic recovery.

Trends expected for 2010, however, may alter the landscape for both customers and providers. Among the most interesting of the cited trends is the Offshoring to America. That said on-shore U.S. locations, particularly in economically distressed areas, are NOW beginning to look like relative bargains compared to other global markets. This will likely be particularly true for public sector outsourcing, where U.S.-based solutions are likely to get preferential treatment.

If the U.S. continues to keep up its “Weak Dollar” strategy in 2010, I believe that we will see an increase in the number of “Near-Sourcing” companies being created in the lower cost of living areas and lower-income tax areas of the U.S. —in states like Arkansas, Louisiana, Tennessee and Nevada.

Outsourcing to India, China, South America and Eastern Europe will still thrive but some of the risks associated with outsourcing to these countries might be mitigated by the use of some of the newer Near-Sourcing alternatives.