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Old 03-02-2014, 10:40 PM
 
Location: 10110001010110100
6,385 posts, read 10,845,236 times
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Quote:
Originally Posted by NJBest View Post
Outsourcing IT meets two goals:

1. Outsourcing turns the people doing the actual IT work into the product (of the company that the work is outsourced to). This creates an incentive for these companies to invest into their staff (via training, education and other methods). IT outsourcing contributes to creating a larger population of highly skilled individuals. It's great for the IT crowd because they are generally more employable with all that training.

2. Outsourcing makes IT more efficient. Maintaining IT staff is incredibly expensive. You can't cost-effectively retrain employees for each new IT project... especially when they are dealing with completely different projects. Having the ability to bring in experts in that particular area and have them start working immediately is more cost effective.

The reason why outsourcing is IT's biggest success areas is because it enabled businesses of all sizes to adopt and maintain technology at a much more affordable and efficient rate than they would have otherwise been able to do so. I like to use companies like IBM, Dell, HP, and Cisco as examples when discussing the positive impact of outsourcing. These companies spend millions of dollars per a year investing in their employees so that companies like Johnson & Johnson, General Mills, and Fisher Price don't have to. Companies like Johnson & Johnson, General Mills, and Fisher Price would have to spend a fortune understanding IT and maintaining a staff. Outsourcing helpdesk and networking to companies like IBM and Cisco is much cheaper because that's what IBM and Cisco are great at. It's rare that a research company like Johnson & Johnson would have the skills to pull off IT as efficiently. If they tried to, it would have a negative impact on what they are good at. It would redirect unnecessary resources away from the revenue stream.
The outsourcing you mention, where companies pass their IT needs onto large IT service providers, does make sense in some cases and I have no problem with that.
Some of the companies using contract workers or outsource their IT servicing to companies, may not be getting the best service because I have seen it in person as I have been at both positions. Some companies may be satisfied overall but many of them are getting by and settling for inferior service unless they have one of those contract workers stationed at their office/building which in this case, cost effectiveness that you mentioned becomes highly questionable.

Anyhow, this part of the discussion doesn't really interest me so I will stop there.

The part where I disagree with you, would be the assumption you made about the companies that would use the savings from outsourcing and invest in their employees or clients. I am sorry but it seems a bit being naive to me. I seriously doubt most companies, especially after the reception, have been doing this!
I have to see some published articles confirming your statements then I will believe it.

My only problem with outsourcing is, when the job goes to a person who is here on H-1 or a non-American living overseas! If the company is based on US soil, hire legal residents, period. Exception would be for highly skilled positions that the company is unable to find candidates, locally. In IT, that is not likely to be the case.

I have worked with many foreign H-1 workers, most were boneheads with inferior work quality. The most sickening part was, seemingly nice and friendly, after a few months, the novelty wore off and they were slacking worse than all other workers. Worse part was, they became disgruntled and forcing themselves to hide their bitterness when they start discovering how much less they were making than the resident workers, even though they were making way more than what they would be making working for a local company back in their country!

Just like outsourcing manufacturing, they have gone too far with outsourcing IT overseas and it has and will continue to to bite them in the ass. You think they would learn their lesson from moving almost all manufacturing out of the country!

I'd love to see some articles from reputable sources on how outsourcing overseas has benefited this nation, if at all.

Quote:
Originally Posted by NJBest View Post
I saw no indication that they were talking about jobs in India and China. They simply said "outsourcing". While offshoring is an extremely small part of outsourcing, I can only assume that people familiar with IT know the difference.
I dissent with that part. Imo, it seems like a much bigger part than you stated.
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Old 03-05-2014, 12:54 PM
 
4,533 posts, read 4,218,543 times
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IT jobs will always be needed in the US, its just many will not pay what they used to since they are more people looking for work than there are jobs available. Employers know this so they dont have the incentive to pay you top dollars since you can easily be replaced now.
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Old 03-06-2014, 07:27 AM
 
Location: Southern California
4,448 posts, read 5,450,646 times
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Outsourcing is offloading a companies non core business function to the lowest bidder such as computer support stuff to computer company. That support company can be a overseas owned and managed company which can hire domestic or import staff to work with visas. Mailroom staff is commonly outsourced.
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