Tech Leaders Share their Views on Outsourcing

Although 72 percent of companies outsource IT functions to third-party providers, the practice is still controversial. In fact, eight in ten adults say increased outsourcing of jobs to other countries hurts American workers, according to a study by Pew Research.

Since outsourcing impacts the careers of tech professionals, we wanted to understand the key arguments from both sides of the debate. In that spirit, we asked several tech executives where they stand on outsourcing, and why. Not surprisingly, they were in favor of the practice, with caveats. Here are the advantages and disadvantages from their perspective. 

Pro-Outsourcing Arguments

Tech executives view outsourcing, when used correctly, as a valuable strategic tool.

“I actually come down somewhere in the middle,” explained Will Weider, an experienced healthcare CIO who now works as an interim tech leader. “When an outsourcing initiative has a clear, well-understood goal and it serves a strategic purpose, then it has a good chance of succeeding.”

For instance, when Weider had to choose between building a new datacenter or turning over the day-to-day management of computing and storage resources to a third-party provider, he opted to outsource. The move not only lowered operating costs, it allowed him to focus energy, resources and capital on automating technology and workflows that improve patient care.

He’s also outsourced testing/QA and database management and administration to U.S. firms that had greater expertise than his in-house resources.

Tech execs say that, given the rapid changes in technology, it’s hard to keep up and do everything well. External service providers can achieve economies of scale and levels of expertise unavailable to individual companies.

“Outsourcing non-strategic, operational tasks makes a lot of sense,” agreed Zhenya Rozinskiy, an entrepreneur and consultant who previously worked as an IT director and VP of engineering. “It frees up your staff to focus on your organization’s core competencies. But I certainly wouldn’t outsource a weakness that is supposed to be a key differentiator or value-added service for your firm, such as development activities in a software company.”

Executives argue that, with those operational tasks absorbed by an outsourcing partner, current staffers can assume expanded responsibilities in areas such as project management. Outsourcing partners can also teach staffers new, specialized skills, explained Tom LaPlante, an experienced CIO and managing partner of Star Support.

Indeed, the nature of outsourcing contracts has changed over time. What began as arm’s-length agreements have (in some cases) become highly engaged, strategic partnerships. “You can’t just throw it over the wall and get really good results,” LaPlante noted. “But I’m not going to soft-soap it: there were times when our staff dropped from 50 to 35.”

Whether your company outsources or not, you need to be curious and willing to learn new things to have long-term job security in tech, he added.

Anti-Outsourcing Arguments

Although these executives had a positive experience and would outsource again, they insist that IT outsourcing is not a panacea and is not appropriate for every situation.

For instance, outsourcing strictly for monetary reasons is a bad idea that will probably fail, according to Rozinskiy. “I wouldn’t do it just because you can get the same people for less money,” he said. “It’s bad for morale and you’ll just end up spending the money on something else. Companies that do that are shooting themselves in the foot.”

Actually, it’s better to outsource when things are going well and the company is growing, Rozinskiy explained. When you take that approach, employees see it as a vehicle to sustain growth instead of a threat.

Language, cultural and time differences, and data security have to be carefully considered when outsourcing IT functions overseas. “I have outsourced almost exclusively to domestic partners,” Weider said. “I’m able to meet with them in-person and the communication is better. Frankly, I always felt that I have better control and would be able to hold a local company accountable if something went wrong.”

Weider’s preference for domestic outsourcing is flourishing. According to a recent article in The New York Times, companies are “pulling back from hiring programmers a world away,” even though an American programmer costs five to seven times more than an Indian developer.

The bottom line is that, whether it’s domestic or overseas, every business uses outsourced services, and the practice is here to stay. “You’re better off embracing outsourcing and working to make yourself so good and versatile, that you’re irreplaceable,” Rozinskiy advised.

Comments

43 Responses to “Tech Leaders Share their Views on Outsourcing”

November 21, 2017 at 8:59 am, Tim said:

The biggest problem with management et al is the trend towards absolute estrangement and alienation of the work force, with a contempt that is expressed in how the the hiring and management of humans in the work place is done.

Everywhere I go I see this contempt for the very people that make big companies bigger, more profitable, and more efficient.

The reply from management for devotion, dedication, craft and hard work from your people is typically disinterest, boredom, apathy, and contempt, as if the money to pay people is coming out of their own personal bank account. This contempt is expressed in depressing wages with outsourcing, off-shoring, and in-sourcing of guest workers. In case you’re a sociopathic manager/babysitter, this is insulting to the locals that were born here, live here, and work here. Just in case you need to have it spelled out.

When management stops expressing contempt for the very people that got you there, the work place, the market, everything will improve. But as long as you’re going to kick your own people by insulting them and hiring people that can’t innovate, or even speak English, you degrade your own path as a company. You’re saying you really don’t give a shit about anything but you and your personal, greedy bonus, damn everyone else. Until this attitude of contempt for your people changes you are systematically running out of exploitable markets, and will ultimately have to be decent or no one is going to work for you, or with you without some kind of guarantee for you to be fucking decent, respectful, and check your contempt for people at the door–with government labor changes to effect that, or unions. The unions are coming if you don’t change. And you WILL have to be decent or go out of business.

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November 21, 2017 at 1:21 pm, wageSlave said:

Outsourcing is a simpleton solution to a complicated issue. In its simplicity, the decision to outsource ignores the complications that it causes sacrificing long term stability for short term gains and it is based on a logic fallacy. It assumes that there are two different labor forces; one for employees and the other for contractors. I can assure you that it is the same labor force. What happens in one area of the work force affects what will happen in the other area of the work force.
The decision to contract out has implications on the labor pool. The problem lies in the contractor business model. Contracting firms generally do not maintain a work force. That is a misnomer and maintaining a superior work force is just plain wrong. They call a head hunter and hire out of the same labor pool as the employer does. This means that the Pareto’s principle applies meaning that you have only a two in ten chance of getting one of the better contractors. This also means that you have an eight in ten chance of not being happy with the decision. This is the labor reality of the logic expressed in the article quotes.
Unfortunately, the long term consequences are a bit more troubling. CEO’s and CIO’s have the responsibility of maintaining their own labor pool. Whether they want to or not. Therein lies the real problem. If they are not maintaining their labor pool and the contractors are not either then who is responsible? Government? Colleges? If that is the case, then the tech industry is deep deep trouble long term. If the employers are not training new entrants into to the labor pool and not paying an adequate wage to keep existing talent then the labor pool is going to dry up over time. And I believe we are seeing exactly that. Then there is the Millennials coming through. DEEP DEEP DEEP trouble.

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November 22, 2017 at 6:35 am, wildtrout said:

I’ve worked on both sides and understand the perspectives. The point about language barrier is accurate. The language barrier can extend the length of troubleshooting events as much as two to three times. Incident managers continuously struggle to communicate with offshore participants. It begs the question whether drawn out time to communicate then accomplish common tasks, in the final analysis, really equates to lower offshore costs.

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November 22, 2017 at 7:21 am, JR said:

Here’s how I live every work day – waiting for the other shoe to drop. As an older worker whose company has an India team that keeps getting larger and larger, I know the handwriting is on the wall. I can’t wait until I can get out of IT. What a crappy way to live.

Companies today offer no loyalty to their employees yet expect loyalty from their employees. It’s a 2 way street, you have to give respect to get it. Every decision companies make is based on their bottom line with little thought or care for the employee or the environment.

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November 22, 2017 at 3:11 pm, Delta said:

I agree, I have been working IT for a long time. You see it time and time again. New CEO hired by the board to cut cost, reduce staff, consolidate to drive stock prices up. Outsourcing is always the first thing that is looked at. I have been with two separate companies back to back and both have done this, and both to Indian based firms. Both were driven off of money and not expertise and in both instances the people working there had to train the Indian staff prior to leaving as an added injury to insult. Once everything was documented and knowledge transferred they are normally terminated shortly after. Both companies i had worked for, for over 4 years each. So there is no loyalty and it fosters apathy and a mercenary outlook on how you look at your next employer.

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November 22, 2017 at 7:25 am, Bub said:

I agree with you, Tim and wageSlave. It appears that the leaders in technology want to mask the dooming problem by saying it’s not what you think it is when it clearly is. How can you expect people to believe that outsourcing is a good idea – especially if you are an American company (and an American citizen???)? I’m all for a competitive market. However, when you use money that could be used to train your current employees on contractors and outsourcing resources, then you are damaging your company’s morale. I think there is something being masked here, but it’s unknown to me at this point what it is. I would certainly admit that some employees do get paid well. However, not all do. And there is data that proves that Americans have been “out-waged” by the upper management more than 300 times over. It didn’t used to be this huge of a wage gap. But there is. I’m all for rewarding workers (including upper management) their success. However, I think there needs to be a restructuring so that everyone gets paid appropriately. You can still make more money than your subordinates. But make sure that they still get paid the amount they should be paid based on the success of the business. Whether it’s by years of service or by stellar performances, it must be calculated evenly.

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November 22, 2017 at 7:42 am, Joen Doe said:

Out sourcing to India or where ever usually India is a simple of of creating cheaper help. Look at University of California. It is coming down to the almighty dollar. Cloud appears to be the way to go but there is a price and if everyone goes there eventually that price will increase simply because hardware will increase in cost and less companies will be purchasing it and cost will increase as less manufacturers will be making hardware and only certain kinds of hardware. It also makes an easy escape goat for managers who will the blame be placed on the contractors. Who at that point will be treated as a kite and cut loose. No real ownership and that point management maybe outsources as well.

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November 22, 2017 at 8:17 am, Testy11 said:

Most CIOs follow groupthink to ensure their survival. When others are outsourcing then it’s easy to make that decisions and not get fired. The new trend is outsource software management to vendors, networks to cloud and really have little in house. Just a matter of time when your competition figures out a better way and takes you to the cleaners. However the C levels would have cashed out and could care less.

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November 22, 2017 at 8:18 am, Onthe Wall said:

‘valuable strategic tool’. Whoever told you this is FULL OF SHIT. I was programming mainframes from 1978 thru March 2001, that’s when they started to outsource. Let me tell you a ‘valuable strategic tool’ would be anything including outsourcing that would have helped a programmer do his programming job. By the way I contracted from 1980 thru March 2001 WITH ONLY 2 WEEKS DOWN TIME. OUTSOURCING WAS DONE FOR 1 REASON AND 1 REASON ONLY ‘TO SAVE MONEY BY NOT PAYING DOMESTIC PROGRAMMERS THEIR EXPENSIVE WAGES’ any other excuse is TOTAL BULLSHIT. By the way the outsourced work had to be done at a rate of 20% of what The US only cost would be, why, because of all the fixing that had to take place when the product came back from India and the problems had to be fixed. (PS try looking at the problems RBS had with their outsourcing). Try talking about this now, ‘who has control of the US IT market place?’. I have kept records of every job I was offered and kept track of all of those I applied for AND better than 90% of all those offers are from INDIAN COMPANIES, YOU KNOW DOT HEADS. I have my JOBS APPLIED FOR E-MAIL FOLDER with over 2,000 entries since only 2009 and most of the names of the INDIAN recruiters I cannot even pronounce. So now I have been FUCKED by US companies from March 2001 and living my ripe old age in poverty. So tell the asshole who told you ‘valuable strategic tool’ I would love to send his job to let’s say a deserving country like Pakistan and he can now relax with no job for the rest of his life. GOOD LUCK.

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November 22, 2017 at 11:34 am, Fred said:

“On the Wall”, I fully understand you: I’m IT consultant for about 3 decades no, but some remarks about your story:
1) There are not that many mainframes anymore. So I’m not sure what jobs you applied for since 2001, but if it’s mainframe, i has become a very small niche market. Re-schooling in painful and can be a disappointment because you have to compete with a 23 yr old guy/girl with same skills, but might be the only option
2) Not every job is outsourced to offshore. Most Indian outsourcing companies (TCS, Infosys, CTS, etc. but also Cap Gemini, IBM etc.) have a large presence on-shore too (I work for one in the USA). If you can’t beat them, join them…
3) In the current job market, flexibility in location is needed too. So if you can’t travel 5 days a week, you are at a big disadvantage. Indian companies often want you to relocate for support jobs, which I can’t do because of my family situation. That restricts also my job options. That is the cheap outsourcing model, but is still domestic and not off-shore.
4) In the last 16 years you wrote >2000 letters. I assume that after the first couple of 100 you found out that this approach didn’t work. Did you think about leaving the IT completely and for example re-school to science teacher or so? Doesn’t pay that well, and rules plus budget cuts can be terrifying but it might give you more satisfaction with what you are doing
5) I agree that most Indian headhunters have no clue what they are doing: Emails like “Hi you have an impressive resume, we have this (non relevant) job for you” is deleted right away. But I also got calls / emails from very ‘respectable’ headhunters from fancy offices who became dead silent when giving my resume. 100% born and raised Americans who didn’t give a sh*t about communicating and/or give feedback. There are good and bad headhunters: USA native and Indian alike

Don’t misunderstand me: I agree with your objection against outsourcing, but I think you don’t do yourself a favor by getting bitter about past times.

Good luck!!

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November 22, 2017 at 3:15 pm, Delta said:

Yeah i have had this happen twice so far both times same result. Work force was a far cry from competent and they kept most of the US state on for 3 months to train these guys so they did not wreck everything day 1. To say you gain anything skill set wise is a bold face lie. These engagements are solely to drive profit, both companies i was with sold shortly after and the CEO’s that were hired to get the stocks up where well compensated to do just that. Get them profitable by any means possible, even cannibalization and then get the company sold before it fell to pieces.

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November 22, 2017 at 3:30 pm, Mech E said:

Mech E here. We get it too. Whole engineering departments have been laid off to be replaced with “guest workers”. Lots of proper angst in the half dozen prior comments. Out here in Kalifornia may I note there is a lawsuit against the biggest H1 visa user for Fraud.

https://www.google.com/amp/www.ocregister.com/2016/08/24/county-gets-26m-settlement-after-claiming-it-was-defrauded-by-international-tech-firm/amp/

Since the first two years of Obama, the only work I’ve had is coming in to medical device companies in trouble with FDA due to the numerous boo-boos of these tird worlders and thier questionable mudhole diploma creds…that is until the recent election results but it still ain’t back to a decade ago. I do get a daily string of offers from Hindi accented recruiters for electronics engineering positions on the east coat knowing full well I’m a Mech E based on the west coast, and for less $ than I could make pumping out toilets.

If outsourcing is so wonderful, why are these grossly overpaid underworked public sector types who retire in their 40’s on more than an Engineer earns not replaced by “guest workers”? It is because they matter and you don’t. This illegal situation of scab tird world tech workers is put on us by our own government as part of transferring wealth out of the private sector and into the public/parasite sector.

Look up “National Association of Technicians and Engineers” It is a new group with eponymous url. Let’s get political and take our lives back from the psychopaths and traitors that sold us and our country out.

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November 22, 2017 at 8:56 am, Starnavig8r said:

So 72% of big business outsources some or all of their I.T. And manufacturing. With all the cultural downsides and community sacrifices attached, is it any wonder that the same entities and their political cronies are held in low esteem by those deliberately displaced? As someone kicked to the curb by outsourcing recently, I empathize with others in the same predicament! Hey Corporate America & Global Industries, you are people too! The backlash you created, by outsourcing is now in motion- the law of unintended consequences!

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November 22, 2017 at 9:18 am, Trey said:

If it is done correctly, outsourcing can be a good option. Like the article says, it allows company employees to concentrate on what the company needs. It can also allow employees to learn new skills for their career. It all depends on management plans.

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November 22, 2017 at 9:30 am, Joan Dark said:

Greed.
Selfishness.
Short-sightedness.

Most business leaders in the U.S. never think ahead farther than one quarter.

The U.S. is nothing but one big high school, and unfortunately all the worst bullying jocks and cheerleaders get to run everything.

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November 22, 2017 at 9:34 am, Robert Curoso said:

Someone was talking about Local Outsourcing. Yes, That changes the outsourcing strategy. Instead of sending the job outside the country doing it through a local Outsourcing company. That’s why all the Giant Indian Companies (like Tata Consulting Company, Infosys,Pyramid Consulting etc etc) are sitting here in US. They already have captured most of the government big projects, Big companies. They are playing lots of interesting games. When they any opening, they send all the information to their own country before the local consulting companies even know about it. That’s why we are all getting hundres of calls from foreign counties for different positions evem tjey cannot pronounce the city or state name. Some time they create so complicated job requirement and say there is no skilled worker for this requirement so bring from abroad. When these companies associates in foreign country getting people ready for those fake requirement and H1 at one sixth price of a local US Experts.
We are all in the same boat facing the same issues and is increasing every day. Know idea when this trend will have an end.

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November 22, 2017 at 9:53 am, Frank K said:

It’s interesting how people at the top are deceptive and incapable of telling the truth. I lump these people (CEOs and upper management) together with the scum in our scandal ridden entertainment and media industries. We are going through a moral and ethical crisis, and disingenuous articles like this one show that the rot is everywhere. The author can couch his words however she likes, as she shows that she is yet another water carrier for the globalists.

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November 22, 2017 at 9:59 am, craig kensek said:

I didn’t see any of the people interviewed saying, “We dedicate $$ to and require that employees invest some time in training to keep their skills current for their and the company’s benefit.”

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November 22, 2017 at 10:00 am, SJ said:

I’m in manufacturing design, not IT, but we have experienced the same outsourcing problems with jobs going to third-world countries. People that just a generation ago were scratching the ground with sticks to plant their crops are now designing and building the products sold here. And we wonder why there are quality issues? I lived in Taiwan for 2 years and saw it firsthand, and they are light years ahead of China and India!
Oh, and not to put too fine of a point on it, but the author of the article isn’t even in a tech profession – she has a degree in English and Journalism and made her living from recruiting (read: outsourcing)! That makes her a parrot and a shill for the greedy CEOs, so don’t expect sound advice from her.

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November 22, 2017 at 11:03 am, IOutsourcedMyBrain said:

This article is so disingenuous. I guess the writer was told in school not to make broad generalizations, and the article’s point was to be even-handed so as not to bite the hand that feeds, etc.

The only reason for outsourcing is money. Now, it may be semi-hidden, as in, “We don’t want to maintain servers, IT infrastructure and personnel when our business is food service or finance,” or “off-site means a tornado/hurricane/earthquake won’t take everything down,” but that’s money. Those businesses feel confused and somewhat screwed over by direct hardware and software sales (thanks, clueless/dishonest sales reps!), and have no interest in training or even hiring tech personnel (thanks clueless/dishonest HR and recruiters!).

How many tech people are treated like dirt when the company’s focus isn’t tech (you know – like recommend some necessary fix for security and get told, “Oh, those guys [always guys] just want new toys” – or maybe the toilet cleaners get an award/bonus, but IT gets the usual nothing). So often businesses resent having to have technology and tech personnel in the first place, like it’s not only money out of people’s own pockets, but a total waste (because their business is widgets, not software).

While I guess I’m going to start controversy by saying that, although I’m *not* in favor of offshoring jobs, nor am I a supporter of H-1Bs, racism, agism (either towards young or old) and insults aren’t an argument or solution. The H-1B system is broken. Let people apply for jobs on their own from all countries and compete fairly, which includes not setting rates so low only someone from the third world can do the job (I’m talking about the hiring creeps accepting bids for, say, an entire user manual for $2 or software development at 50 cents an hour). One reason there’s such resentment about H-1Bs, offshoring and outsourcing is that it’s done through clear lack of respect for talent, skills, people.

I guess the first problem was that the article fails to differentiate between outsourcing and offshoring. Two different problems, both broken. When combined, the company doing the outsourcing/offshoring has no direct say over personnel; unfortunately, they rarely care beyond whether the outsourced company was meeting metrics, metrics being sole measure of job performance. The outsourcing/offshoring company gets pushed for metrics and does anything to meet them, to the detriment of actual work quality. The company accountants, stockholders and C-levels are happy, because, other than the payment for services, everything is off their books.

Whether the system is technology hiring, immigration because “no American workers…,” crooked contracting agencies, bottom-line-driven companies, lack of training, etc., the short version is the tech job system is broken. It doesn’t get fixed, because people making policy at both company and government level have no idea about anything going on in technology, short of what they hear from various lobbyists (for government) or sales (for companies), combined with what they want to believe to justify their short-sighted, bottom-line approach.

Too many companies, despite the “booming” economy, are hiring like it’s 2009 and employees ought to be grateful they have any job. Then they wonder why people quit and work solely for money. When the only hiring and outsourcing decisions are based on money, then that’s what workers are going to maximize, too.

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November 22, 2017 at 11:10 am, Rodney Roberts said:

Outsourcing can be done onshore or offshore, this article does not differentiate between the two. Offshore outsourcing (along w/ H-1B, L-1, F1 OPT, et al., has not only devastated STEM professions, but also made U.S. dependent on foreign labor. Displaced American STEM professionals are now on a ‘Trail of Tears’ into poverty (including myself).

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November 22, 2017 at 11:28 am, Tess said:

So, I see the business reasons now. These would be the same reasons for outsourcing accounting, HR, and some manufactured (OEM) parts. The vision for what is wanted is there at the company … but the desire for external accountable and wanting to focus on just the “interesting work” seem to be the primary motivators.

The pendulum has swung to specialization, and now I see why I have been approached by various IT and PM consultant companies, that have chosen to create companies filled with database, programming, project management skills. They project themselves as silos of talent.

As a contractor, avoiding the silos is difficult. Perhaps wrongly, I envision them as being a modern day version of a sweatshop – no respect, no gratitude, quick to judge, authoritarian and no real interest in anything beyond the immediate.

Thank you for this article, it has got me thinking about some things.

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November 22, 2017 at 12:00 pm, Blank Reg said:

I’d like to see Trump impose a 5-year moratorium on H1-B visas, and see how things shake out.

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November 22, 2017 at 12:25 pm, Sprout said:

Call your congress people and demand their support for H.R.3217 sponsored by Rep. Jerry McNerney of CA.

Google it!

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November 22, 2017 at 1:19 pm, J Dog said:

That number above is about correct; 20 percent or 1/5 the price of in house U.S. . I’ve reviewed the swim lanes and done the analysis on many projects, and watched them go to the Indian teams offshore based on price alone. It’s the way it is now, and it ain’t going to change. This article is just more Dice click bait.

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November 22, 2017 at 2:54 pm, Joe said:

It’s all about cheap labor, large exec bonuses, and making life easier for senior management. If it can’t be outsourced, it’s insourced – that’s why these uber rich CEOs are screaming for more H1Bs. Always follow the money.

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November 22, 2017 at 9:26 pm, tesfaye said:

Most of the advantages the leaders highlighted were from profit perspective, they called it “focus on the core systems and outsource the rest”.
There are perspectives that I feel broadly differ on the significance of offshore Vs local outsourcing. On my view the decision factor on local Vs offshore outsourcing is cost despite other barriers that in long run may have adverse implications that may lead to political, military, and social effects have been ignored. Some of the highlights I feel important to make decision that the leaders ignored, which may have implications are:
Local
———-
Loss of Managerial Control
Threat to Security and Confidentiality
Quality Problems
Labor cost variance

Offshore (in addition to the above)
———–
Jurisdiction
Labor and ethics
Cultural barriers
Competition

These are important factors that may impact the resourcefulness of society, in other words shifting competitive, imaginative, and other relative factors known to make up creativity, which lead to entrepreneurship and are diminishing from US. Therefore, offshore outsourcing is a deliberate shift of skillfulness. Proficiency is a time process and as we know for example, china to build the current status outsourced labor played big role.There proficiency increased and at this stage competing neck to neck with US to subsidize all US businesses worldwide, including the US local market, and outsourcing played major role the Chinese dominate the world market.
But we noticed that outsourcing allow to increase the profits and mainly the bonus margin of the executives significantly but in the long run will be major threat to the US on the global stage.

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November 22, 2017 at 11:00 pm, Dee said:

Companies do not take into consideration the clients’ view on outsourcing services. As a customer service representative, when having to transfer a client to IT support, immediately the client would protest and complaint wanting to know what country the support was from. Most always clients voiced their opinion about cultural differences and difficulty understanding the English spoken. No matter how frustrating it is, clients will call back repeatedly until they get someone that is from U.S.A. to help

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November 23, 2017 at 10:35 am, Ryan said:

Create a quality product or outsource. The investment is ultimately up to you.

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November 23, 2017 at 11:45 pm, dan said:

What a poor article! The author interviewed two mildly interesting individuals and writes an article with a presumptuous title on that basis?

Bah humbug.

That is not a REAL discussion of outsourcing, conflating off-shore and on-shore outsourcing and confusing the results.

Bottom line:

1. Off-shore outsourcing has proven, over and over again, to be an unmitigated disaster.
a. We can’t manage a workforce 12 hours away, who does not speak our language and does not know our culture;
b. Our lawyers have no clue how to write such outsourcing contracts with people who interpret English words different than us;
c. You add 2-3 layers of management on your side, and 2-3 layers of management on the outsourced outfit side, converting a simple afternoon-minor-change to a 6 month endeavor with uncontrolled results;
d. It costs more in the end. The lower hourly rate of the Indian, Ukrainian, Chinese, or whatever technologist, is more than gets consumed by the additional involvement of the lawyers, managers, and other cost centers (which do not appear directly in the project budget, hence the wrong notion of savings), not to mention the lost opportunity costs resulting from delaying the outcome by the six months mentioned above.
2. On-shore outsourcing on the other hand, when you hire local experts to take on specific aspects of the tasks are a known and proven success, and have been so for decades, so are not worthy of discussion.
a. You are within the same time zone, or close to it; The outsourced outfit’s personnel shares the language and culture;
b. The lawyers share a common understanding of terms, and contracts are much easier to write and enforce;
c. You explain things once, they are understood, and are executed promptly without the need for layers of approval on both sides;
d. The hourly rate is higher, but the quality and promptness of delivery far outweighs the cost increase.

Case closed.

Why can’t Dice ensure that these articles are worth publishing? They can exercise better judgement than printing such poor excuses for tech articles. Where are the editors? Sleeping at the switch?

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November 24, 2017 at 10:12 am, BillyBobJohnson said:

Ah, yes, yet another heavily slanted Dice article appearing to be neutral. I swear that Dice is now run by one of the outsourcing companies in India. Pro-outsourcing, pro-H-1B visas, etc. You guys care as much about the American worker as the executives you interviewed. I’m done with you.

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November 24, 2017 at 3:05 pm, StevieJay said:

They wouldn’t even post my comment from a couple of days ago because I was critical of the author and how she wasn’t even in a tech industry…and had a Degree in English and Journalism to boot! What a bunch of pro-business propaganda at the expense of the common worker. Time to bring back the Democrats.

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November 24, 2017 at 10:16 pm, Pro Technologist said:

Some of you didn’t even read the whole article which properly mentions near the end “I wouldn’t do it just because you can get the same people for less money,” he said. “It’s bad for morale and you’ll just end up spending the money on something else. Companies that do that are shooting themselves in the foot.”
The something else that’s mentioned is the support and maintenance cost for fixing the mistakes.
As we all know it ends up being a short sighted budget fix that all the big company execs use to look good.

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November 25, 2017 at 2:45 pm, JohnC said:

My company is now overrun by foreign workers. The initial excuse for outsourcing was to fill the void (imaginary or not) for shortages in IT talent locally. This was a lie from the start. I know many who had their positions eliminated in favor of cheaper foreign labor. When I mentioned this to my elected “representatives” , they insisted (and continue to insist) these are the best and brightest. This is a joke in itself. I now have 1 American worker and 5 foreign workers reporting to me. This was forced upon me, as I could only hire from “strategic vendors”. This is due to the symbiotic relationship between my company and the vendors. You scratch my back, I’ll scratch yours. The last few I have interviewed, I swear they must have just pulled them in off the street. Thy couldn’t even answer basic technical questions! They are really scraping the bottom of the barrel now.

One critical point I must make: Some of my consultants have been on the team 12 – 18 months, and are accumulating a great deal of subject matter expertise. When the time comes for them to move on, I have to start over again! So who is benefiting from this arrangement in the long term?

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November 25, 2017 at 2:50 pm, Greg said:

Just more mgmnt mumbo jumbo BS. Trying to cya with the same ignorant excuse. Face it- productivity and total product value had diminished, even to the point of customer service not existing any more. I was one of the poor dreaded that we’re kept on board to fix everything the ignorant Indians developed. Truth is, MGMT does not care about project success. They pretend thru this chaos just to survive.

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November 25, 2017 at 2:58 pm, Greg said:

One additional sickening aspect I saw – Almost every resume from India was falsified. They don’t have the experience -not even close – to being a programmer. Some we’re even copies of ones I saw prior. Just different name. We were reduced to hiring anyone thank could speak English clearly.

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November 25, 2017 at 5:15 pm, JohnC said:

My company is being overrun by foreign workers. As they become more entrenched in an organization, you’ll see more and more of them. At a recent meeting, management bragged that they hired 130 new resources. What they failed to mention is that 95% of them were foreign workers. Any time I need new resources I have to go through their “strategic vendors” who only supply foreign workers. And guess what? There just conveniently happens to be a symbiotic relationship between these vendors and my company. A “you scratch my back, I’ll scratch yours” arrangement. In my opinion my company and countless others are abusing the H-1b program to their advantage and to the detriment of the American workforce. I have contacted my elected “representatives” (ha), and they give me nothing but lip service. The same old line “best and brightest, blah, blah, blah. Ever interview these resources? A large number of them don’t even have the skills they claim they have. On one occasion, the firm used a ringer for the interview and sent someone else entirely. This was of course overlooked because of the “special relationship” the firm has with our company. Outsourcing is wrong because:
1.) The jobs should go to Americans first.
2.) They are not as cost effective as claimed
3.) The remaining American workforce is alienated.
4.) Their diction has been getting worse (in my opinion) . They are taking much less care in speaking clearly to us.
5.) We do get good ones, and they become subject matter experts. If they then leave after 12 – 18 months, we have to start all over again.
6.) They are taking over business analyst and systems analyst roles now as well as programming. Once again they do not communicate well, and are hard to understand during presentations.
7.) These practices take opportunities away from American workers.

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November 27, 2017 at 4:32 am, A Potter said:

When companies hire IT Directors and CIO’s who are schooled in business rather than technical skills, they are forced to outsource. If you hire a hands-on leader with experience and technical skills there is no need to out-source. Out-sourcing always costs more money in the long-term because of the inability of outsourcing companies to carry a variety of customized programs that fit the needs of each company and its individual departments. The problem is that HR Departments don’t understand technology and can’t tell a highly-skilled IT candidate from a giraffe, and they are unwilling to turn control over to in-house IT staff who can identify qualified candidates.

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November 27, 2017 at 10:26 pm, KH said:

Most of the manfacturing is from China
Most of IT outsourced or workers from India(of course China too)
Call Center outsourced to other Asian countries
Fake Universities importing millions as students
Additionally importing millions of refugees
Where is the place for US citizens to survive?

Political parties should take blame because their are encouraging minorities to get more votes. I dont say wrong if people from certain nations should be banned from contesting in whatever election whether local or school district etc to prevent spreading corruption. IT is already corrupted and if it spread to the government agencies everything will corrupted just like their nations.

Political Leaders and USCIS should sit together to save current and future US generations not to go into poverty.

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December 06, 2017 at 2:18 pm, dan said:

“…Political parties should take blame because their are encouraging minorities to get more votes.”

That is not factually correct. Those imported are not US citizens and therefore can’t vote anyway until they get citizenship which is rare, limited, and takes quite a few years to happen.

The blame is on the companies that are encouraging this to bring in cheap (slave) labor.

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December 06, 2017 at 2:27 pm, rank said:

FWIW, about a million people naturalize every year, so I would hardly say that it’s rare.

And its easy to register to vote, proof of citizenship is not required. I strongly suspect that voter fraud is greater than what is officially reported

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December 06, 2017 at 3:03 pm, dan said:

Voter fraud was thoroughly investigated and debunked.

No need to divert attention from the REAL culprits – IT companies (some even foreign) bringing in “slave” labor.

Seen it with my own eyes.

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December 06, 2017 at 4:36 pm, Frank K said:

I am very aware of the abuses in the H1-B and L1 Visa programs.

As for voter fraud, I am suspicious of the official reports. It’s just too easy to do it. I’ll leave it at that.

In the end, there are many factors that harm American workers: offshoring, “guest workers” who never go home and illegal immigration. They all contribute to depressing wages and harming Americans.

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