[HPADM] Summary: Survey: Outsource Unix System Admin Offshore

From: SAbramson@Wabtec.com
Date: Wed Feb 04 2004 - 09:40:48 EST


hpux-admins:
emc_list:
 
Thanks to all who responded.
 
Here are some web-site references I got:
 
    http://www.techsunite.org/ <http://www.techsunite.org/>
 <http://www.whosoutsourcing.com/> http://www.whosoutsourcing.com/

 <http://www.insourceamerica.org/> http://www.insourceamerica.org/

 <http://www.businessweek.com/smallbiz/content/dec2003/sb2003122_8887.htm>
http://www.businessweek.com/smallbiz/content/dec2003/sb2003122_8887.htm

I received much too much info to repeat all of it. Here's a synopsis:
 
1. Outsourcing isn't a new idea. It has been talked about within the US
and has been done before, by companies within the US. Sometimes well, and
sometimes not so well. Quality poor, expected savings not realized;
sometimes brought back in-house. Nobody actually said that it had been done
in their shop successfully, or that they were doing it right now.
 
            A point was raised about infrastructure improvements: the
outsourcer is not particularly interested in keeping state-of-the-art. He
is interested in keeping your shop going at the lowest possible cost. And
meeting SLA requirements. So an outsourced shop can fall behind.
 
2. "Insourcing" was the rage about 10 years ago. EDS did this at GM.
CSC did it. The IT Department went home on Friday afternoon and came back
in Monday morning and they were CSC employees. Same desk, phone, etc. New
employer. Layoffs sometimes follow.
 
2. Applications development has been the first to go (offshore). Again,
sometimes well and sometimes not so well. Quality, cost, communications
(oral, verbal, time-zones, data-comm). Again nobody said that their company
did it and it was whopping success.
 
3. Other jobs are affected, not just IT: Call centers, preparation of
1040 forms, reading MRI's. All going to India.
 
4. There were several comments about management not understanding the
detailed complexity of the requirements of the job - which would lead to
poor support, eventual return to in-house UNIX System Admins.
 
5. One respondent was a Defense Department contractor - they operate by
different rules than most of us in business - security clearances, etc,
which prohibit of inhibit offshore outsourcing.
 
6. There is a problem with security/privacy. How would you like your
private Social Security Number and banking info floating around countries
whose privacy/security laws are not as secure as ours?
 
7. Rita Workman mentioned the swing in the US over the past 25 years
between "centralized" and "decentralized" IT functions. Centralized
mainframe shops to decentralized IT in the business units to "consolidated"
centers. Things go in cycles.
 
8. Some onsite staff is essential: face-to-face meetings with end users;
checking the cables for crossed, stepped-on, etc. Long-range planning. So
they will keep some staff...
 
9. In the UK someone outsourced IT to Prague! (Do they speak English in
Prague?)
 
I think that the bottom line (this is my opinion and several responsdants)
is that companies are going to try offshore outsourcing because the price is
so low. Then in a few years the results will come in and they will
re-evaluate.
 
The "offshoring" of manufacturing jobs took 50 years (and is still going
on). Offshoring IT jobs is about 5 years old and will be decieded in the
next 5.
 
    Stuart
 
Stuart Abramson | WABTEC Corp. | Wilmerding, PA
Off: 412/825-1434 | Cell: 412/417-1567 | email: sabramson@wabtec.com
 

  _____

From: Ayson, Alison {Info~Palo Alto} [mailto:alison.ayson@ROCHE.COM]
Sent: Tuesday, February 03, 2004 1:20 PM
To: Abramson, Stuart
Subject: Re: [HPADM]: Survey: Outsource Unix System Admin Offshore

Stuart,

Here's a couple of good websites Outsourcing of IT jobs:

 <http://www.whosoutsourcing.com/> http://www.whosoutsourcing.com/

 <http://www.insourceamerica.org/> http://www.insourceamerica.org/

  --- Alison Ayson

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