NETWORK WORLD NEWSLETTER: MARK EHR ON OUTSOURCING 08/18/04 Today's focus: Mailbag: Readers speak out about offshore outsourcing
Dear [EMAIL PROTECTED], In this issue: * Your thoughts on offshore outsourcing and who should be ��outsourced * Links related to Outsourcing * Featured reader resource _______________________________________________________________ This newsletter is sponsored by Oracle An Economist Intelligence Unit White Paper: From Grid to Great? Grid computing is breaking out. Familiar mostly to academics, government groups, and scientific researchers, this technology that links together the power of diverse computers to create powerful, fast and flexible systems is beginning to catch on in the corporate world. Included in this white paper, results and interviews from a global survey among Sr Executives, click to download now http://www.fattail.com/redir/redirect.asp?CID=72606 _______________________________________________________________ CHECK OUT NW FUSION'S NEW WHITE PAPER LIBRARY Just launched: NW Fusion's White Paper Library with new features and improved capabilities! Sort NW Fusion's library of white papers by Date and Vendor, view white papers by TECHNICAL CATEGORY, mouse over white paper descriptions and take advantage of our IMPROVED white paper search engine. CLICK HERE: http://www.fattail.com/redir/redirect.asp?CID=72549 _______________________________________________________________ Today's focus: Mailbag: Readers speak out about offshore outsourcing By Mark Ehr When I brought up the topic of offshore outsourcing in a recent newsletter, I knew it would be a contentious issue. I was definitely right. I received many e-mail messages from readers about the issue, and not surprisingly, the majority of the messages were against the whole idea. For example, one reader took the viewpoint of someone who has lost their job to offshoring: "The well educated, financially secure person always looks at situations others find themselves in as, o-well, they can be trained, move along, it's normal to be without a job. We are not talking about just telephone answering positions, like catalog sales. But, highly technical positions, educated, skilled white collar jobs, along with the manufacturing jobs. "Each job lost is another one that needs to be created, sometimes with lower pay. In addition, it may be further away from home, increasing the stress level on the individual and the family. Yes, it does hit a nerve to everyone living in America. Furthermore, American workers who buy goods from these companies shipping jobs overseas feel hurt in more ways than just the position moving to a foreign country. We need to stop the hemorrhage, let these other countries build their own companies and hire their own people, but not at the expense of the American worker." Another reader had an innovative idea as to exactly which American jobs should be outsourced: "I think you are right on the money since we did not learn our lesson 25 years ago in manufacturing when many jobs were lost, at all levels, due to outsourcing overseas. Besides the jobs being lost, technology itself was lost in bringing foreign companies up-to-speed. We became more dependent upon foreign manufacturing, which pre-empted more farm-out of technology because it was perceived as a way to save money. "Executives make decisions to offshore based upon the bottom line to the organization. Maybe the high-paying executive jobs should be offshored leaving middle management and others onshore to protect the enterprise technology and enjoy the fruits of their labor. After all, there are fewer [high-paid] executives that would be affected by offshoring [of] their positions, as well as, saving those multimillion-dollar salaries." One surprise came when I received several messages from a guy in India who actually runs an offshore outsourcing company, advising *against* outsourcing to India! "We at <company name> were very excited about opening our branch in India. However, to our bad luck we ran into one problem after another. "India is an ideal place to outsource IT labor work like Web site development or custom solutions, what the majority of companies were doing until recently. But once you get into more sophisticated work, like research and development of products or hosting of confidential data, there are absolutely no copyright, patent and intellectual property protection laws enforced in this country. "India is one of the top 7 most corrupt countries in the world. The laws are only in the books, justice is rarely ever served. Twenty percent of the politicians have serious criminal records (murders, grafts, etc.) and a civil case on average takes 10 to 20 years to resolve. "The majority of businesses completely avoid court, police and try to settle disputes or even criminal offenses out-of-court. Lawyers are not there to practice law, but act more like agents to bribe politicians and/or police to get your work done. "However, even though one can think one can get work done by simply bribing, it is not that easy. It takes lot of time and effort to decide who should be bribed and how bribed money will be distributed effectively. Every corrupt officer has to agree on the amount etc." He makes a good point - when you send work offshore, the number one area of risk is that your valuable intellectual property will fall into the wrong hands, and then local enforcement of patent, trademark and copyright laws is non-existent. This should be a key concern to anyone considering this type of outsourcing. As always, I welcome your ideas, suggestions and comments on the subject of outsourcing; you can e-mail me at <mailto:[EMAIL PROTECTED]>. Thanks for reading. RELATED EDITORIAL LINKS The reality of offshoring Network World Outsourcing Newsletter, 07/28/04 http://www.nwfusion.com/newsletters/asp/2004/0726out1.html _______________________________________________________________ To contact: Mark Ehr Mark Ehr is a Research Director with Enterprise Management Associates in Boulder, Colo., a leading market research firm focusing exclusively on all aspects of enterprise management software and services. Mark has more than 20 years of experience working with distributed systems, applications and networks. His current focuses at EMA are applications and systems management, mobile and wireless, enterprise application integration, security, and Web services. He can be reached via e-mail at <mailto:[EMAIL PROTECTED]> _______________________________________________________________ This newsletter is sponsored by Oracle An Economist Intelligence Unit White Paper: From Grid to Great? Grid computing is breaking out. Familiar mostly to academics, government groups, and scientific researchers, this technology that links together the power of diverse computers to create powerful, fast and flexible systems is beginning to catch on in the corporate world. Included in this white paper, results and interviews from a global survey among Sr Executives, click to download now http://www.fattail.com/redir/redirect.asp?CID=72606 _______________________________________________________________ ARCHIVE LINKS Archive of the Outsourcing newsletter: http://www.nwfusion.com/newsletters/asp/index.html Breaking outsourcing news and resource links: http://www.nwfusion.com/topics/outsourcing.html _______________________________________________________________ High-tech apple pie - the virtual data center The move to virtual data centers is one of the most important transitions of the last 30 years. Learn why this new technological vision is so compelling in our webcast, The Evolution of the Virtual Data Center. http://www.fattail.com/redir/redirect.asp?CID=72475 _______________________________________________________________ FEATURED READER RESOURCE WONDERING IF YOUR PAY IS UP TO SNUFF? Check out Network World's 2004 Salary Calculator to see if you're getting paid what you're worth. Using data collected in the 2004 Network World Salary Survey, we've programmed this calculator with several categories that could affect your pay. Answer the questions and find out what the average salary is for your job category. Click here: <http://www.nwfusion.com/salary/2004/calculator.html> _______________________________________________________________ May We Send You a Free Print Subscription? You've got the technology snapshot of your choice delivered at your fingertips each day. Now, extend your knowledge by receiving 51 FREE issues to our print publication. Apply today at http://www.subscribenw.com/nl2 International subscribers click here: http://nww1.com/go/circ_promo.html _______________________________________________________________ SUBSCRIPTION SERVICES To subscribe or unsubscribe to any Network World e-mail newsletters, go to: <http://www.nwwsubscribe.com/Changes.aspx> To unsubscribe from promotional e-mail go to: <http://www.nwwsubscribe.com/Preferences.aspx> To change your e-mail address, go to: <http://www.nwwsubscribe.com/ChangeMail.aspx> Subscription questions? Contact Customer Service by replying to this message. This message was sent to: [EMAIL PROTECTED] Please use this address when modifying your subscription. _______________________________________________________________ Have editorial comments? Write Jeff Caruso, Newsletter Editor, at: <mailto:[EMAIL PROTECTED]> Inquiries to: NL Customer Service, Network World, Inc., 118 Turnpike Road, Southborough, MA 01772 For advertising information, write Kevin Normandeau, V.P. of Online Development, at: <mailto:[EMAIL PROTECTED]> Copyright Network World, Inc., 2004 ------------------------ This message was sent to: [EMAIL PROTECTED] ------------------------ Yahoo! Groups Sponsor --------------------~--> Make a clean sweep of pop-up ads. Yahoo! Companion Toolbar. Now with Pop-Up Blocker. Get it for free! http://us.click.yahoo.com/L5YrjA/eSIIAA/yQLSAA/BCfwlB/TM --------------------------------------------------------------------~-> Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/kumpulan/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
