| Few topics are as controversial as outsourcing. This is | | | | given shared cultural context co-nationals share with ir |
| understandable. To state obvious, jobs are a | | | | fellow citizens. In or words, most custom development |
| fundamental part of our ability to lead a happy and | | | | will call upon local citizens, because ir ingrained "skill" at |
| productive life.Unfortunately, jobs exist within context | | | | dealing with local clients cannot be |
| of volatile global markets. growth of Outsourcing is | | | | replicated.Maintenance, however, can be performed |
| result of developing nations reaching a point in | | | | off-site, including at offshore locations. This was central |
| economic evolution where y have skills to compete in | | | | to arguments made by Rahul Sood and George |
| higher-skill domains traditionally served by rich country | | | | Gilbert in ir recent article. y noted that one of best way |
| workers. Same cost advantages offered to | | | | to use outsourced labor is as a place to offload |
| lower-level manufacturing are now being brought up | | | | maintenance tasks, freeing up domestic labor force for |
| value chain to software development.In United States, | | | | higher-value new Software Development.Even so, this |
| a number of congressmen have proposed bills which | | | | doesn't mean that domestic IT staff won't face jobs |
| would protect American IT workers from foreign labor | | | | pressure. In long term, however, it pays not to |
| competition. Fur more; though few are as overtly | | | | underestimate power of software industry to create |
| anti-trade as Dick Gephardt or Dennis Kucinich, it is | | | | new jobs.Rise in demand for software developers in |
| increasingly clear those Democratic Party contenders | | | | 1990s was result of industry's attempt to digest |
| for U.S. presidency view foreign competition as a | | | | changes introduced by spread of Internet. Technology |
| potential winning issue in 2004 race. | | | | continues to advance, however, and it is my opinion |
| Don't deny that Western IT workers will have to | | | | that we have only seen tip of iceberg in terms of |
| make adjustments to accommodate new global reality. | | | | integration of computing power into our daily lives. I |
| However, as I explain in this article, outsourcing is not | | | | spoke of software opportunities created by adoption |
| jobs catastrophe its opponents make it out to be. Fur | | | | of RFID technology in a previous article, but also |
| more, is a number of practical reasons to maintain an | | | | consider advent of smart phone technology, or even |
| open market position which have ramifications for | | | | growth of wearable processing power (SPOT |
| future health of Western economies. In short, like it or | | | | watches being a good example) to be areas for |
| not, Western nations need outsourcing.Don't | | | | future growth and jobs.Technological advances in se |
| overestimate threat my first job as a programmer | | | | and or areas will drive demand for new categories of |
| was with Price Waterhouse. My memory of that time | | | | software, and that demand will pick up any slack those |
| includes a frightening amount of airplane food, as I | | | | results from expansion of global pool of developers to |
| made weekly round-trip flights to client destinations | | | | include citizens of developing nations.Lastly, large |
| from my home "base" (at time, Dallas, Texas).Reason | | | | economies are often ir own biggest markets. Exports |
| for this was that Price Waterhouse assisted clients in | | | | account for 10 percent of GDP in United States (which |
| creating custom software--and this required close | | | | is currently world's largest economy), compared to 43 |
| interaction with client. Whole teams of developers | | | | percent in South Korea and Switzerland, 36 percent in |
| would be flown to site to gar requirements, generate | | | | New Zealand and 28 percent in France. This position is |
| prototypes and write code. Real world Custom | | | | mostly a function of America's size, at 300 million |
| Development is often a trial and error process, | | | | people, and its wealth, with a GDP of 10 trillion. As |
| something that works best when developers on-site | | | | China's 1.3 billion citizens grow in affluence, Chinese |
| can respond instantly.Maintenance work, however, | | | | companies are bound to find that China is its biggest |
| does not require such close interaction since broad | | | | market.As Asian economies grow, programmers are |
| outlines of application have already been laid out. This | | | | going to be too busy serving ir own markets to offer |
| development was often performed off-site, reform, | | | | much competition for American or European software |
| saving client airfare and housing costs.Custom | | | | projects. It is in interest of Western programmers, |
| Software, even under best conditions, often must | | | | refore that Asian economies develop as fast as |
| contend with "fuzzy" requirements. Likewise, most | | | | possible.Company competitiveness matters. Many who |
| software is of ad-hoc variety, and often is "temporary" | | | | oppose outsourcing offer no alternative means to |
| in that actual code written has a short life span. This | | | | make up for cost savings missed by a refusal to |
| means that most software will need kind of close | | | | outsource. This matters, because modern companies |
| client interactions Price Waterhouse provided to its | | | | compete on a global stage. Unless every company in |
| customers. Such interaction can't occur when | | | | world decides to forego use of lower-cost software |
| consultants are sitting in an office in Hyderabad.Fur | | | | developers, companies that fail to outsource will make |
| more, people best qualified to work with American or | | | | selves less competitive. |
| European clients will be or Americans or Europeans, | | | | |