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MIT Students Get an Education in Software Development

John Valenti writes "Philip Greenspun's Blog had an interesting entry for December 1: 'It turns out that most of the content editing and all of the programming work for OpenCourseware was done in India...'"

110 of 595 comments (clear)

  1. You know you're really in trouble... by El · · Score: 5, Insightful

    when Indian developers are even cheaper than grad students!

    --

    "Freedom means freedom for everybody" -- Dick Cheney

    1. Re:You know you're really in trouble... by Anonymous Coward · · Score: 3, Insightful
      A trite comment.

      The web page is responding very slowely, so:

      Not all of our students will see this cover story in Business Week on the migration of high-paying jobs to India. But most attended a lecture in 6.171 by the folks who run MIT's latest big IT effort: OpenCourseware ( http://ocw.mit.edu ), which distributes syllabi, problem sets, and other materials from MIT classes (at least one semester after the class is actually given). During the lecture the students learned that, although ocw.mit.edu is a purely static .html site, it is produced with a database-backed content management system. In fact, of the $11 million donated by foundations to support the service, about $2 million was spent on technology and the salaries of folks at MIT who oversee the technology.

      The more sophisticated portion of ocw.mit.edu is a 100 percent Microsoft show. A student asks the speakers why they chose Microsoft Content Management Server, expecting to hear a story about careful in-house technical evaluation done by people sort of like them. The answer: "We read a Gartner Group report that said the Microsoft system was the simplest to use among the commercial vendors and that open-source toolkits weren't worth considering."

      Students began to wake up.

      A PowerPoint slide contained the magic word "Delhi". It turns out that most of the content editing and all of the programming work for OpenCourseware was done in India, either by Sapient, MIT's main contractor for the project, or by a handful of Microsoft India employees who helped set up the Content Management Server.

      Thus did students who are within months of graduating with their $160,000 computer science degrees learn how modern information systems are actually built, even by institutions that earn much of their revenue from educating American software developers.

    2. Re:You know you're really in trouble... by musikit · · Score: 5, Funny

      donno what school you went to but at the school i went to a large majority of the grad students were indian. so

      "You know you're really in trouble...
      when Indian developers are even cheaper than" Indian developers???

    3. Re:You know you're really in trouble... by ConceptJunkie · · Score: 4, Insightful

      the companies would rather hire you if you're talented and cheap.

      But if they can only choose one, they'll go with "cheap" every time.

      --
      You are in a maze of twisty little passages, all alike.
    4. Re:You know you're really in trouble... by crumley · · Score: 2, Interesting
      Apparently, the mean programmer pay in the U.S. is that high.

      If there is a disparity between mean and median, mean would be higher here, since the high paying jobs would distort the distribution and pull up the mean.

      --
      Preventive War is like committing suicide for fear of death. - Otto Von Bismarck
    5. Re:You know you're really in trouble... by ImpTech · · Score: 3, Funny
      "You know you're really in trouble... when Indian developers are even cheaper than" Indian developers???

      Hey, thats big trouble. Thats like a paradox or something!

    6. Re:You know you're really in trouble... by afarhan · · Score: 2, Insightful

      well, the logic of all this runs on simple but deeper thread:
      1) usa consumes materials from all over the world, and does pay back fully. hence, there is a trade deficit.
      2) to overcome this, usa has to sell it products and services (read microsoft, pepsi, mc donalds and michael jackson) to the world. note that:the usa is unable to sell anything like oil, steel or power. it can only sell things produced intellectually because usa has killed it materially productive industries.
      3) when usa asks countries like india to open up its markets to usa products, it cannot refuse to open up usa markets to its programmers (india has a huge supply of people, more english speakers in india than rest of the world put together).
      4) the indian economy is a low cost economy. it has something to do with the culture. most of the indians owe no debts (majority have no credit cards either), infact, almost all have small savings. as a result, living is cheap. and salaries are lower.

      now rather than blaming the indians and callling them names (about being hopeless programmers), it might do americans well to blame those who have made it an expensive country to live in.

      i can vouch that a programmer in india (even at $5 an hour) will earn Rs.40,000. That will allow him to have a five star date every weekend, maintain a decent car and live in a decent neighbourhood.

      now if $5 goes such a long way in india, you should really be thinking of what went wrong with the usa economy. it is time for serious contemplation.

      --
      The purpose of all philosophers was to impress women
  2. Funny by Quasar1999 · · Score: 2, Interesting

    The interesting thing is that it's not that it was crap, but rather that it was done in India. Had they had some firm in the US do it, it wouldn't make the headlines...

    There are equally good and equally bad firms all over the word that do development... India is no exception.

    --

    ---
    Programming is like sex... Make one mistake and support it the rest of your life.
    1. Re:Funny by arkanes · · Score: 5, Insightful
      See, heres why it's funny. MIT is an engineering college. They're very famous and respected. However, even software enginerring graduates from MIT can have a hard time finding work in IT these days, because they expect (and often deserver) high salaries and the IT sector is very tight right now. One reason it's so tight is because alot of development is being outsourced to India, where it's cheaper.

      So you've got one of the premier software development colleges in the country outsourcing it's software development work to India. It'd be like a medical school outsourcing it's health department.

    2. Re:Funny by dafollower · · Score: 3, Insightful

      But MIT is not a premier software development school..it's a primier computer science school..and do it's graduate students really want to develop this content management system..or do something more innovative?

    3. Re:Funny by ameoba · · Score: 2, Insightful

      Well, if it's like any other engineering college, odds are that a large number of their students are from India already...

      --
      my sig's at the bottom of the page.
    4. Re:Funny by arkanes · · Score: 2, Insightful
      Because there's a perception (that I have no reason to believe is false) that MIT graduates are among the most skilled and brightest people in thier field. Of course, if anything, people are learning that being skilled and bright is as much of a hindrence in the modern job market as it is a benefit - mediocre is good enough for almost everything.

      This is not to say that Indian developers are mediocre, of course, most of the ones I've worked with are very skilled. It's simply rather depressing that the disparity in economies lets them be so much cheaper compared to US workers.

    5. Re:Funny by shakah · · Score: 2, Interesting
      I'll agree that MIT graduates are almost certainly among the brightest people, and that in the long run businesses do a lot better by hiring bright people versus people with specific knowledge of a particular technology (especially in software, where technologies can have a shelf life of 12- to 18-months).

      But for developing production-quality software solutions, and in particular a content-management solution, I'm not sure they'd come anywhere near the "most-skilled" category. With a few years of job experience, perhaps...

    6. Re:Funny by Columbo · · Score: 4, Informative

      You should note that it wasn't MIT that directly outsourced the work to India. It was, in fact, a U.S. company that was hired for the project that in turn used their Indian development resources to do the coding work.

    7. Re:Funny by operagost · · Score: 2, Funny
      You'll never find it.

      It's an ancient Chinese secret, huh?

      --

      Gamingmuseum.com: Give your 3D accelerator a rest.
  3. Student Labor vs. good money by ericspinder · · Score: 4, Insightful
    No wonder it cost so much to go to college these days, even MIT doesn't use it's own students for cheap labor these days.

    I guess that it's hard for the school administrators to soak money off a project unless it's got a big budget. Perhaps a conversation to a close friend goes like this: "Yea, we're outsourcing the project to an Indian company which is paying me to consult"

    --
    The grass is only greener, if you don't take care of your own lawn.
    1. Re:Student Labor vs. good money by Orne · · Score: 2, Insightful

      Cost for one year of MIT undergraduate tuition in 2002-2003: $28,230.00
      Cost for one year of MIT undergraduate tuition in 2003-2004: $29,400.00

      School runs from Sept 3 to May 21, so estimate at 39 weeks. Next, assume the student is working for 1/2 tuition credit (which a lot of colleges like to do for part time work), at ~ $14,500. Since they're working part time and going to school, lets be generous and say they work three days a week: 24 hours. You've just forked out $15.50/hour for one "cheap labor" marginally-skilled student.

      Now, compare that to what you can get for outsourcing it to anyone else... I'm not surprised they did; because of their rising tuition costs, they've priced out their own students.

    2. Re:Student Labor vs. good money by ericspinder · · Score: 2, Insightful
      Next, assume the student is working for 1/2 tuition credit
      Have you ever heard of work-study. I haven't been to college in a number of years and I don't know what the current rates are but I am sure that it doesn't pay that well. I bet there are dozens of students saying "where can I get half off my tuition", show us that link.

      Also who says you have to pay them anything, hell, it could be a class project.

      Last time I checked MIT was an Educational Institution, that means they are in the BUSINESS of educating their students. Building and deploying an application would be good assignment, perhaps even a *gasp* "learning experience".

      --
      The grass is only greener, if you don't take care of your own lawn.
  4. An older thread about outsourcing experiences.... by tcopeland · · Score: 2, Informative

    ...is right here.

    Lots of familiar points are made - timezone differences impede voice communications, geography impedes physical communications, "fire and forget" projects are not very common, etc. Seems like it can be made to work, though, if folks on the project take the time to keep the communication lines open.

  5. Open Courseware not Open Source by alexborges · · Score: 2, Insightful

    Yeah, the first thing i did when i looked at this great effort of MIT was, where is the software!

    So i poked arround and its on the faq (and i seem to remember i got email from them when i asked). They made it with a microsoft CMS piece of shit software and some other stuff.

    The good part about it is that teachers just do their stuff in HTML and most of the infrastructure is basicaly static with some MSCMS stuff arround it.

    I guess there are many good things about it, but tech infrastructure is not one of them.

    --
    NO SIG
  6. I'm starting to come around in my way of thinking. by Sheetrock · · Score: 4, Insightful
    I used to be somewhat aggravated about the perceived flood of jobs leaving our country.

    However, this (in addition to a weakening dollar) will eventually lead to equilibrium and a return of jobs as manufacturing is able to afford more workers locally. Additionally, it's somewhat symbolic that India has worked on a project that will ultimately allow other disadvantaged countries to develop their own technology resources off of information, hopefully returning to the pool of public knowledge rather then proprietary.

    And MIT students get a lesson in economics as well.

    --

    Try not. Do or do not, there is no try.
    -- Dr. Spock, stardate 2822-3.




  7. Harming the local economy... by TheMCP · · Score: 5, Insightful

    Here I was, unemployed, using all my contacts to try to get in on the programming for OpenCourseware, and they outsourced it to India while I struggled to pay the rent.

    I think it's time for me to contact my state elected representatives and let them know how MIT is harming the local economy by sending work out of the country when there are top notch people unemployed here, and suggest that I'd be unhappy if the state were to give MIT any particular financial breaks or other incentives.

    1. Re:Harming the local economy... by AxelBoldt · · Score: 2, Insightful

      I'm pretty sure that people in India need jobs more desparately than people in the U.S., so outsourcing leads to more equality on a global scale and is therefore a good thing.

    2. Re:Harming the local economy... by Cragen · · Score: 2, Informative

      and then you will learn the third and final lesson. Your elected representative ain't representing you, dude. Sorry. *cragen

    3. Re:Harming the local economy... by Dutchmaan · · Score: 4, Insightful

      Welcome to global capitalism...

      India offers a service of the same quality for a lower price... you must either lower your price or offer something better...

      Globalization has its downside you know...

    4. Re:Harming the local economy... by Daytona955i · · Score: 3, Insightful

      Same level of quality? Have you actually seen the code coming from India?

      You really do get what you pay for but the PHB saved a few dollars so he's a hero.

    5. Re:Harming the local economy... by Josuah · · Score: 4, Insightful

      Globalization has its downside you know...

      I hardly think India sees the "downside" to this "globalization". Being forced to compete with others is not a downside. It's called a reality check. Quite simply, you're not as important and good as you thought you were.

    6. Re:Harming the local economy... by Lips · · Score: 2, Interesting

      Being forced to compete with others is not a downside.

      Globalisation has been good for employers in the 1st world, but employees are screwed. True globalisation would mean that prices would fall (in the 1st world). Why do we pay so much for goods and services in a "global" market?

    7. Re:Harming the local economy... by kma · · Score: 3, Insightful

      Same level of quality? Have you actually seen the code coming from India?

      Call me "PC" if you must, but this seems like borderline racist thinking. You are, I hope, aware that India offers state of the art technical education, right? I mean, because, otherwise, you'd kind of be shooting your mouth off about something you, you know, don't know anything about.

      So if education can't explain it, what is it? The hot climate? All that spicy food? What? Spell it out for us, Daytona955i. We're all ears.

      I work with many people born and educated in India (and Asia, and Europe, and the former Soviet Union) and some of them are absolute cream-of-the-crop, as-good-as-you-could-ever-hope-to-be, top 10th of the top percentile good. Smart people are rare everywhere, but it's a huge world, and I don't ever kid myself that there isn't some hungry kid in Uzbekistan who could do my job better than me for half the money.

  8. Future Headline from June 2004 Boston Globe... by anactofgod · · Score: 5, Insightful

    "MIT Graduates Can't Find Jobs to Pay Back Student Loans"

    ---anactofgod---

    --

    ---anactofgod---

    "Equal opportunity swindling - *that* is the true test of a sustainable democracy."
  9. Re:Story has little merit... by mental_telepathy · · Score: 4, Insightful

    I appreciate the point you are making, but I don't think it was posted with ill intent. I think the point that is being made is that MIT should have a large pool of talented, cheap programmers to draw on. So why outsource?

  10. Dear M.I.T., by mikesab · · Score: 5, Funny

    Where abouts in India did you find these programmers?
    Yours Truly,

    Lumberg
    Manager,
    Intertech

  11. I must be in the wrong career track by rcastro0 · · Score: 4, Funny
    I want back in the academic world !
    (...)about $2 million was spent on technology and the salaries of folks at MIT who oversee the technology. (...) A student asks the speakers why they chose Microsoft Content Management Server (...) The answer: "We read a Gartner Group report (...)"
    --
    Quem a paca cara compra, paca cara pagará.
  12. It has merit by dinskeep · · Score: 4, Interesting

    because it looks like MIT chose a) the vendor and technology and b) the contractor to do with work with little investigation.

    a) Speaks to their inability to even attempt to investigate various options WRT technology. Not encouraging from a place of learning.

    b) Speaks to their inability to even attempt to use a neccessary IT project as something that could benefit their students and serve as a learning experience for the school and it's customers (the students).

    I expect brainless, off-the-cuff, short-sighted decisions like this from PHB's, not from a center of learning.

  13. Boston Local Sapient Friendly by Gargamell · · Score: 2, Insightful
    I was lucky enuf to get there before the usual /. traffic turned it into gridlock so...

    Yeah, that sounds pretty consistent with most companies. Take a silly task, have a outside company take care of it, and it just so happens that they do everything in India. A friend of mine works for Sapient, and he says all he does is have conference calls with the other side of world! I guess if he got hired tho, the MIT grads have a good chance too!

    Another interesting spin was what a fella Rahul was saying about the demon of capitalism. Those that can do it cheaper and better will always get the money. Whether it is trully better or not is up for debate, but for those that are in industry know that most of the time, it is in the very least a very viable option. The thing that i want to put up to the flame is what people think of the "capitalistic" approach to the forum posting. I have heard all kinds of politicians speak on this: encouraging companies to stay here, global diversity increases the welfare for everyone, and i was curious what kind of experience or sources people might have to support either idea.

  14. Re:I'm starting to come around in my way of thinki by DLR · · Score: 4, Insightful

    Riiiiiight. That would explain why 90% of the world's steel production is overseas. Because weakening dollar prompted manufacturers to bring it back to the U.S. since we already had existing infrastructure.

    That would also explain why it took actual Federal legislation to keep 50% of the semiconductor founderies in the U.S. when we started with 90% of them.

    This isn't about hating Indians because they're a different culture. This is about watching high tech U.S. jobs vanish overseas to some $2 a day worker so some corporate boardroom bozo can buy his 5th Rolls. My question is this: When all the people in the U.S. are unemployed or under employed because all the formerly high paying - high tech jobs are overseas, who's going to buy the $50 widgits (that cost $1 to make overseas)?

    --
    "Like fire and fusion, government is a dangerous servant and a terrible master."~RAH
  15. Re:Story has little merit... by CrankyFool · · Score: 2, Insightful

    This is not "some company outsourced a project to India." This is "MIT outsourced a project to India." MIT is different from "" both because of their presumed easy access to relatively inexpensive but highly technically-competent labor and because for many of the people in the core audience of Slashdot (geeks), MIT stands as something of the Shining City On the Hill. It's an overstatement to compare MIT->geeks to Mecca->Muslims, but there's definitely an element of reverence and respect we have for the institution and its students.

    So having MIT decide to outsource a project like this to India (ignoring for the moment the Microsoft component) is significant and newsworthy to many of us.

  16. Outsourcing, Good vs. Evil? by humandoing · · Score: 5, Insightful

    I've been following this "outsourcing to India" thing for a while. I have come to several conclusions. The bigger picture here is NOT the fact that developers in North America are losing development contracts, this is just the continuation of a ball that is already rolling.... [read on for more drivel!]

    Conclusion 1) US companies (among others, I'm canadian, it is no exception up here) are going to have to start doing a better job of giving customers and clients value for their budget. Call me a chump, I wanna make a ton of cash just as much as the next guy, but billing someone $100-$200 US/Hour and milking them for all they're worth is not (in my opinion) a good way to do business.

    Conclusion 2) Lots of Indian guys are really smart. I hope this doesn't come as a surprise, but so are a lot of people from a lot of other ethnicities. I myself am white trash, but I know a lot of stupid canadian people too, as well as a ton of programmers in Canada who really otta be flipping burgers.

    Conclusion 3) Corporations (in general) don't care about their employees, economics, or anything else, but rather, their bottom dollar. They don't care who they have to screw out of money, so long as it ends up in their own account.

    Software development just seems to be the latest trend in an already downward spiral. It is the continuation of that which has already started as some slave child has made my Nike runners, and all the people that I try to talk to about why my phone bill is not being directly put onto my Visa bill have been fired in replacement of a computerizes lady who really can't tell me jack-all.

    Perhaps unrelated, perhaps not. This is going to get worse, not beter, while capitalists run the world. What's going to be next? Perhaps more importantly, what can we do to change it?

    1. Re:Outsourcing, Good vs. Evil? by Anonymous Coward · · Score: 2, Insightful

      The problem is not "capitalists running the world." The only power any company has is that which you give it in the form of your dollars when you purchase goods or service, except in the case of monopolies which we are supposedly protected against. By extension, the big failure in this system, if you want to call it that, is that consumers have neglected their responsibility in voting with their dollars, so to speak. While many people have the good sense to spend more money with companies that promote good quality and ethics in business the vast majority don't, and *that* is the only place blame lies: with us as indiscriminant consumers. By continuing to pay those corporations which attempt to stomp on your rights you are giving implicit approval of their business practices. You want the RIAA to stop screwing you over fair use? Stop buying CD's until the production companies go out of business. Tired of Dell outsourcing customer support? Quit buying Dell computers. It's as simple as that... problem is no-one wants to make that sort of sacrifice.

    2. Re:Outsourcing, Good vs. Evil? by nessus42 · · Score: 2, Insightful

      There has never been a nation in all of history that has been run using laissez-faire capitalism, and I feel pretty confident in saying that if there ever were one, it would not be a pretty sight.

      Perhaps we need both gods and devils, and likewise, both socialists and capitalists to keep the world a happy place.

      |>oug

    3. Re:Outsourcing, Good vs. Evil? by SmackCrackandPot · · Score: 2, Insightful

      The situation we're in now (USA/UK/*) isn't too different from the textile industry during the start of the Industrial Revolution. Back then, it took two or more weavers to operate a single loom. British companies were soon being undercut by Indian weavers. However, the English companies managed to remain competitive by improving productivity through automation. The use of power looms (via the steam engine) and the Jacquard looms allowed factory owners to have one weaver operate two looms instead of having three or more weavers in constant attendance. Today, only one technician is required to supervise 20 Jacquard looms.

      Going back to the computer industry, and the only way we (as programmers/engineers) can compete is by moving up a level and trying to automate as much of the design process as possible, using techniques such as expert systems, code generators, intelligent compilers etc...

    4. Re:Outsourcing, Good vs. Evil? by thelexx · · Score: 2, Insightful

      Also, unless the tools are strictly in-house, proprietary and kept under lock and key, in almost no time at all your competition is going to be using the same tools. Quite a bit easier to keep the workings of a physical machine secret a hundred years ago.

      --
      "Gold still represents the ultimate form of payment in the world." - Alan Greenspan, 1999
  17. Re:Think Before Preaching! by BattleTroll · · Score: 2, Insightful

    The second I'm allowed to work in India under an equivelent H1-B program will be when I stop preaching about Free Markets. The fact of the matter is the free market to India is a one way street.

  18. Re:Story has little merit... by Mr.+Slippery · · Score: 5, Interesting
    All it tells you is that MIT...

    Which is training Americans to be software developers...

    outsourced the development of some software to Sapient who did the work in India,
    ...meaning they're not using American software developers...
    and that they used Gartner as a source of information when choosing the software platform.
    ...and that they made their choice of software based on the testimony of the most clueless bunch of soul-for-sale corporate bastards this side of the Sirius Cybernetics Corporation.

    A bastion of American software development is acting in a way that furthers neither America nor software development. No further criticism or comment is needed. In the immortal words of Hunter S. Thompson, res ipsa loquitur.

    --
    Tom Swiss | the infamous tms | my blog
    You cannot wash away blood with blood
  19. So that's that, folks... by Thud457 · · Score: 5, Insightful
    ""We read a Gartner Group report that said the Microsoft system was the simplest to use among the commercial vendors and that open-source toolkits weren't worth considering."

    ...

    A PowerPoint slide contained the magic word "Delhi". It turns out that most of the content editing and all of the programming work for OpenCourseware was done in India"

    If we pay exhorbitant license fees for second-rate crapware with first-rate marketing, we don't have any money left to pay American programmers. Or apparently, even to hire American grad students.

    Closed source == money migrates to the vendors
    Open Source == money can be used to pay programmers.

    Which way do you want it?

    --

    the preceding comment is my own and in no way reflects the opinion of the Joint Chiefs of Staff

    1. Re:So that's that, folks... by Zeinfeld · · Score: 4, Interesting
      If we pay exhorbitant license fees for second-rate crapware with first-rate marketing, we don't have any money left to pay American programmers. Or apparently, even to hire American grad students.

      I am somewhat surprised that what MIT needed did not already exist as commercial off the shelf code. Their requirements are hardly very unusual, in fact since the content is not going to change much once it is put up there is not a great deal of difference between this site and any other web zine.

      What this looks like to me is a boondoggle. $2 million is pretty easy to spend on software if you go bespoke. That is the main reason why most of the open source arguments you see on slashdot are bogus. If you can pay $100K for a product that is 90% complete you are one heck of a lot better off than you are paying $0 for a product that is 70% complete, maybe on a good day.

      Open source is great provided it does exactly what you need if you have to do extensive programming then Gartner are completely right.

      Building a system around Microsoft CMS is one heck of a lot better than mucking arround trying to make CVS do this type of thing. I don't have an issue with that part. But $2 million to customize it...

      Incidentally MIT students are hideously expensive. The student may not get paid much, but the overhead charged by MIT is horrendous and the results can be 'variable' to say the least.

      --
      Looking for an Information Security student project suggestion?
      Try http://dotcrimeManifesto.com/
    2. Re:So that's that, folks... by carlos_benj · · Score: 3, Insightful

      If we pay exhorbitant license fees for second-rate crapware with first-rate marketing, we don't have any money left to pay American programmers. Or apparently, even to hire American grad students.

      IANAMA (I Am Not A Microsoft Apologist), but that just doesn't add up. You would certainly have less money because of the proprietary stuff purchased up front, but they're still spending money on developers after the fact. They could have used that money to hire their own grad students and wouldn't have had to rely on a third party to broker the deal (which is likely where a big chunk of those development dollars went).

      I agree that it would make more sense to listen to your technical staff who might recommend open source than to go goose-stepping behind the latest Gartner group findings - unless you're willing to admit publicly that the shills at Gartner are more technologically astute than the folks that are teaching the techies at your institution of higher learning.....

      Guess that goes to show that, somewhere along the line, all of us answer to a PHB....

      --

      --

      As a matter of fact, I am a lawyer. But I play an actor on TV.

    3. Re:So that's that, folks... by homer_ca · · Score: 2, Informative

      "The student may not get paid much, but the overhead charged by MIT is horrendous"

      Can you explain this horrendous overhead? Most student jobs on campus are work study, meaning that the wages are subsidized by the Financial Aid office and the employer only pays 1/4. That's not even counting the grad students who'd work for free as research.

    4. Re:So that's that, folks... by StudMuffin · · Score: 4, Interesting

      I am somewhat surprised that what MIT needed did not already exist as commercial off the shelf code. Their requirements are hardly very unusual, in fact since the content is not going to change much once it is put up there is not a great deal of difference between this site and any other web zine.

      Being a senior IT guy at the University of Michigan, being an Ars Digita alumni, and knowing intimately how Universities work, I can answer this question:

      Academic institutions LOVE to think that they are somehow different, special, gifted, unique, and dare I say it - divine.

      We like to think that no one else can know our problems and only we can solve them, and refuse to acknowledge that there are only so many different solutions to the same problem. Academic computing boils down to these areas:

      1) Registration/ student records management
      2) HR/Payroll management
      3) Content/presence management for publicity
      4) Online learning systems
      5) Security/signon infrastructure
      5) Coordination of back office components between the other five

      You can argue that there is a need for one more area:

      6) Research computing

      but that normally is a separate group from ACADEMICS.

      I am constantly amazed at how much universities spend on their systems, and how much customization they do - to the tune of MILLIONS of dollars a year. And then, on top of that, when one department decides to go another route, THEY spend alot of money, and then the institution has to eventually roll that structure back into the overall schema, costing even MORE money.

      The bottom line is that university IT systems need to be run more and more like corporate IT, and the same amount of planning, forethought, and most of all INTELLIGENCE needs to be applied.

      --
      Weaseling out of things is important to learn. It's what separates us from the animals... except the weasel. -
    5. Re:So that's that, folks... by Zeinfeld · · Score: 4, Informative
      Can you explain this horrendous overhead? Most student jobs on campus are work study, meaning that the wages are subsidized by the Financial Aid office and the employer only pays 1/4. That's not even counting the grad students who'd work for free as research.

      When I was at MIT the rules were that overhead was charged at a rate of 2.75 times expenses. So if I hired someone as staff and paid them $1000 I would be charged $3750 from my budget.

      The rules for students were somewhat different but still pretty grasping. Basically I would be charged the amount they were actually paid plus overhead and added to that their cost of tuition, I can't remember what overhead would be on that. Tuition at MIT these days is $29K per year. So over a year a student would cost my budget something like $60K, and the student would see less than $10K of that and I would see about 15 weeks worth of work if I was lucky.

      There is also overhead on external contractors but nowhere near as much.

      And yes, this is a complete stinking racket. The only reason it continues is that the government allows the major research universities to do this type of padding as a means of giving them an under the table subsidy.

      I have no clue where the money goes. If you look at the amount of time that the students have contact with the faculty, the amount the faculty are paid and the cost of tuition the sums don't add up. And thats before you consider places like LCS/AI which have always been self funding through government grants. Perhaps the President has a yatch somewhere like the Stanford guy had, he would have to be a lot better hiding the thing round MIT though and if the students found it...

      --
      Looking for an Information Security student project suggestion?
      Try http://dotcrimeManifesto.com/
    6. Re:So that's that, folks... by crumley · · Score: 3, Interesting
      That's not even counting the grad students who'd work for free as research.
      Grad students in natural sciences, engineering and even CS rarely work for free. Usually they are paid stipends, free tuition, and other benefits. While the accounting practices at some universities might shift some of these costs to the school, usually the project that the grad student is working on has to pay the vast majority of these costs.
      --
      Preventive War is like committing suicide for fear of death. - Otto Von Bismarck
    7. Re:So that's that, folks... by Zeinfeld · · Score: 2, Insightful
      Being a senior IT guy at the University of Michigan, being an Ars Digita alumni, and knowing intimately how Universities work, I can answer this question: Academic institutions LOVE to think that they are somehow different, special, gifted, unique, and dare I say it - divine.

      Actually they are not that much different from other enterprises. People simply cannot comprehend that the cost of going bespoke is vast.

      The MIT folk very proudly told me how they built their own system to replace the IT functions my company provides. They only managed to spend twice as much on the project as it would have cost them to by the product of my most expensive competitor and about six times what I would have charged them.

      I don't think that outsourcing to India is the biggest threat to IT jobs. Outsourcing via Web Services is. Most programmers work for IT integration shops churning out bespoke widgets for clients deploying SAP or Oracle Financials, Peoplesoft and the like. A great deal of that work is repetative glue logic and gets cobbled together using string and sealing wax coding styles. Its the sort of stuff that gives Perl a bad name.

      I think that over the next ten years most enterprise computing will go the way it has gone in the hotel business - outsourced commodity product. When you check into a hotel the screen in front of the assistant manager is simply a terminal to an off site central mainframe. Same goes when you step into your bank, Springfield Coop Bank probably outsources all its IT needs to one of the bank tech companies.

      Payroll has been outsourced for years, why not outsource all enterprise IT systems? Payroll, Accounts Payable, Accounts Receivable, HR, each company thinks it just has to do its own thing but in practice everyone works in almost exactly the same way.

      --
      Looking for an Information Security student project suggestion?
      Try http://dotcrimeManifesto.com/
    8. Re:So that's that, folks... by Anonymous Coward · · Score: 2, Informative

      275% overhead? Maybe this is some special MIT thing, but I sense something wrong in the claim. Because the overhead for private funding, DARPA grants and NSF grants to universities is almost always in the range of 50%. At my university it's 45.8%. At another college I know of it's the highest I've EVER heard of: 65%.

      For example, a graduate student who's paid a $15K stipend, plus $10K tuition, costs $35K in a 40% overhead grant.

      Overhead's important to a university -- it basically pays for everything the university does to make your work possible. Otherwise that'd have to come out of student hides.

      Where overhead goes: typically half of the overhead goes to the University's general fund to pay for buildings and electricity and pencils etc. Of the remainder, typically half goes to your department or your dean's fund to help pay for secretaries and toner and phones. The remainder goes to you (the Principal Investigator) for you to do with as you please -- maybe attend a conference or pay for a replacement laptop.

  20. Re:Story has little merit... by JohnsonWax · · Score: 5, Insightful

    Actually, you too missed the point.

    The point was that the approach that MIT took would not have put food on the table of any CS grad in the US. So MIT is turning out these wonderful CS grads and then simultaneously demonstrating in a very visible, successful project that they have very little use for them - that they can rely on Gartner to tell them what software to buy and India to implement it.

    What exactly are the prospects for the MIT grad when even MIT themselves employ this decision making process.

    MIT students might have been able to do this more inexpensively/efficiently/quickly, but that wasn't really even considered. If the organization that has their best educational interests in mind doesn't consider them to be effective resources, how will they be received by an industry that doesn't give a damn about their best interests?

    That must have been one hell of a depressing lecture to attend.

  21. hmm no opensource availbe?huh? by linuxislandsucks · · Score: 2, Interesting

    considerign that RMS is very close by and several OpenSource Content Managment system proejct leaders within 75 miles of MIT ..I find that it shard to believe that MIT did not even look in its own freaking backyard!

    so how big was the MS payoff?

    --
    Don't Tread on OpenSource
  22. But isn't the idea of OpenCourseware by glenrm · · Score: 5, Insightful

    that people all over the world can learn from it, not just MIT students. So it seems resonable to have it be in part developed by people from another location. Perhaps it is time to examine the government policies in states like California that have cause the cost of living to get out of hand and thus the need for unreasonable salaries for any worker. The US itself may need to look at radical reform of the tax code and radical limits of government spending to compete one day, but for today just a handful of states reforming themselves will turn the tide...

  23. what I find interesting about this article... by Daytona955i · · Score: 2, Interesting

    is the fact that instead of using cheap grad student labor, they outsourced to India. I can only imagine how many talented grad students MIT has at their disposal.

    Plus, I'd assume that most grad students (at least all the ones I know) would apreciate the flexability of open source software, thus saving even more money.

    I am more shocked at the waste of money!

    However, if you want to talk about India, the fact that a US univeristy outsourced it's code does not bode well for it's graduating student. CS jobs are getting harder and harder to find here in the US. Why? Well that would be because it's cheaper to outsource it to places like India. The only drawback is that you tend to get what you pay for.

    The reason this is on slashdot is because slashdot has a large population of tech readers of whom this outsourcing effects.

  24. Re:Dear future MIT graduates by eclectro · · Score: 2


    MIT == McProgrammer

    --
    Take the cheese to sickbay, the doctor should see it as soon as possible - B'Elanna Torres, "Learning Curve"
  25. Re:Story has little merit... by nessus42 · · Score: 3, Insightful

    MIT undergraduates are notoriously flakey about completing any kind of project that is not class-related, since their course work takes up 200% of any free time they might have.

    And having a class whose goal would be to complete this programming task would probably not be a good idea: classes at MIT usually concentrate on the fundamentals -- not the specifics of particular hairy development tools that will be here today and gone tomorrow.

  26. Just the process of evolution? by GillBates0 · · Score: 4, Interesting
    I had a long discussion about this topic with my brother-in-law who works on Wall Street. This was the essence of his take (and apparently other of his colleagues') on the issue.

    As an economy (such as that of the US) grows, the quality of life and jobs of the population increases/improves.

    The quality of jobs necessarily means the type of work that the population is willing to do. Jobs which were considered white-collar, and high quality slowly sink, and are no longer considered so as people get wealthier (I am talking about the entire population here--the average).

    The country then looks to exporting those jobs, so that it's population can work on something better...maybe higher level jobs.

    That is what happened to manufacturing...it was considered a menial process, and shipped out to China, while the higher quality jobs (management, etc) were retained in the US of A.

    That is what is happening to software/IT now. I thought it was an interesting take on the issue, in which case, it is just one of the pitfalls in the process of economic evolution of the industry.

    And yes, I am not an economist.

    --
    An Indian-American Hindu committed to non-violent thought/speech/action alarmed by the global explosion of radical Islam
    1. Re:Just the process of evolution? by Aardpig · · Score: 2, Interesting

      I think we should also recognize that the same things have happened (in various forms) in a number of industries including, but not limited to: farming, mining, steel production, automotives, manufacturing of all stripes, textiles, etc. ad nauseum.

      Interesting you should mention textiles -- the British, when they controlled India, deliberately destroyed the large and successful Indian textile industry, since it was in competition with their own industry. Truly, an example of 'what goes around, comes around'!

      --
      Tubal-Cain smokes the white owl.
    2. Re:Just the process of evolution? by GillBates0 · · Score: 2, Interesting
      Good point there: about the automation/commoditization of jobs. Infact, given the automation and machination of work, this process can be traced back through history.

      The earliest of men hunted for food, since that was the only way they could survive. With the discovery of other tools, however, people took to development of those tools (blacksmiths/potters, etc), and as farming/hunting tools grew more efficient, only a subset of the population was required to do that work.

      Then, people developed faster/more efficent ways to make those tools, so only a subset of the population was required to produce them, while others moved on to other occupations/hobbies: astronomy/philosophy/religion, etc. These people were more free to do what they pleased, because they didn't have to worry about basic survival, and were respected for what they did, by the common people.

      Following that to more modern times, transportation was machinized, so less people/animals had to toil through to make transportation possible. Manufacturing was machinized, so lesser and lesser people had to do, what were now considered menial occupations.

      And finally onto our century....it's happened with manufacturing/engineering, and the US...since it IS the richest country (for better or for worse) has always moved on to develop even better technologies to make life better for the world at large. Who knows Biology may be next. I know many people who are choosing to study Bio{engineering | informatics | logy} or do research in the field.

      Wow, this theory really seems to work. I never discussed it with anybody till I posted it here--GillBates's Law.

      As for my handle, I didn't go to UST, so it can't be me. The handle GillBates is already taken, however, which is why I had to append the zero.

      /end rant

      --
      An Indian-American Hindu committed to non-violent thought/speech/action alarmed by the global explosion of radical Islam
    3. Re:Just the process of evolution? by DaveJay · · Score: 4, Insightful

      I respectfully disagree with the basic premise of your statements above.

      Specifically, the idea that "The quality of jobs necessarily means the type of work that the population is willing to do...The country then looks to exporting those jobs, so that it's population can work on something better...maybe higher level jobs."

      At risk of seeming glib, close your eyes, reach out your arms and spin in a circle. You'll probably smack an unemployed IT professional in the back of the head. That individual, and a lot more like her/him, very much want to do the type of work that is being outsourced. The fact that most of them are not being hired is not due to their lack of desire, or (in most, not all) cases their greed, but to the fact that living in the US is a lot more expensive than living in Delhi, so the minimum that a US citizen will accept for the work is higher than the minimum that someone living in Delhi will accept.

      Similarly, when auto plants were closing in Michigan, et al, it wasn't because people didn't want to work, but because they couldn't afford to live on the salaries that Mexican workers would accept.

      In short, "the country" didn't look to export those jobs to allow the population to do something better -- the corporations exported the jobs so that they could get more labor for the same amount of money, or the same amount of labor for less money.

      Think of it as time travel. If you could send your money back to the 1920s, think of the amount of labor you could afford for a fraction of the price! Now, the health care, safety standards, environmental controls, and general quality of life sucked compared to current US conditions, but hey, you don't have to go back there -- only your money does. The goods and services produced by this labor come back into the year 2003 and are sold at today's marketplace rates. That's fundamentally what we're talking about here, and I suppose that's good capitalism.

      Just don't pretend it's for the good of the unemployed, i.e., they don't want to do this kind of work. If you were asked to do your job at a salary that wouldn't pay for your share of rent on a one bedroom apartment shared with three other people, you wouldn't do the work either, no matter how "higher level" they might be.

      Sorry if this seems like a rant. :)

      PS: in my original draft, I wrote "If you could send your monkey back to the 1920s..." which is, on it's own, something interesting to think about. ;)

  27. Re:Dollar bills, y'all by calethix · · Score: 2, Interesting

    The university I attended hired me right after graduation, however I've heard our new management frowns upon that and would prefer that recent graduates go get a job elsewhere. Then after they have outside experience, it's ok for them to bring their new expertise back.

    I've seen at least one case where a student employee was involved in training his replacement instead of just being hired on full time for the job after graduation.

  28. Re:Story has little merit... by fean · · Score: 2, Informative

    They complain about outsourcing when OUR economy is slumping and computer programmers are bagging groceries... yeah, if you try hard enough, you can always relate something to problems with race...

    Just like our school just got sued because they didn't hire a woman for the football coach... she said it was sexual discrimination, the school said that regardless of her qualifications, a team of testosterone pumped college guys would have an extremely hard time adjusting to a female coach. Add onto that that she had never coached football, and it seems pretty clear cut...

    I'm sick and tired of EVERYBODY blaming racism and discrimination for why they aren't doing well in this world, when I'd choose to believe its because they spend too much time bitching

  29. Re:I'm starting to come around in my way of thinki by cmdr_beeftaco · · Score: 2, Funny

    I'll buy 'em. Are they pretty widgets?

  30. For whom was it cheaper to use Indian talent? by ukalum · · Score: 3, Insightful

    Do companies like Sapient give discounts when they're going to use programmers in India? Somehow, I doubt it.

    The comments about Indian talent being cheaper would only apply here if MIT paid less than they would have had they used a company that employed American programmers. If they didn't get a discount, then Sapient simply improved their profit margin by using offshore programmers and MIT gained nothing from it, while indirectly hurting the US economy.

  31. Challenge your assumptions please by brundlefly · · Score: 3, Insightful

    Not all students who attend MIT are Americans; many are from India.

    Many Indians might think this outsourcing is a good thing, not a bad thing.

    Some MIT graduates return to India to work for Sapient and Microsoft.

    Sapient and Microsoft are global organizations. MIT is an American institution which educates global students and works with global corporations.

    Phil Greenspun might be outraged (and then again he might not be, his blog doesn't lean either way). I am not.

    1. Re:Challenge your assumptions please by ScottyB · · Score: 2, Interesting

      "MIT is an American institution which educates global students and works with global corporations."

      This is only true to a small degree. MIT is very much an American institution meant to educate AMERICANS and work with AMERICAN companies. Most of the funding for MIT's research comes from none other than Uncle Sam, who has a very keen interest in promoting American success. MIT could not possibly have the number of American students it does if it did not have a highly-restrictive quota on international students.

      What you are seeing here is simply global capitalism at work. In this case, it really was not sensitive to MIT to require American workers to do this job (it's not a defense contract or any major advanced technology), and cost-wise it made much more sense.

      As always, both sides of this outsourcing debate have valid points, and they both tend to point to extreme cases. IT is not a particularly "hard" field in the way it tends to need most of its workers. IT design is certainly difficult, but I don't think the field of content management is developing new ideas so rapidly as to need the number of computer science graduates in this country. Most of the workers needed are simply for setting up infrastructure--digital construction workers, in a way.

      I'm sorry if this comes off unsimpathetically, but programmer != computer scientist, even if many programming jobs incomprehensibly require a BS in computer science, which seems to confer some sense of entitlement. For basic database programming, being a hobbiest or getting a degree at a 2-year trade school would more than suffice.

      An unfortunate and difficult part of living in capitalism is the requirement that one must adapt. If you're not pushing the limits of your own abilities, someone is apt to come and screw you over by giving your job away to a person that makes 1/5 of what you did. If you have a BS in computer science and were simply programming, you may need to go back to school to get more knowledge of theory or find a new profession (or move to Europe, where I hear they don't force you to take jobs outside of your profession).

      I think its good for those students to learn what to expect in the work place. They are indeed paying $160k for a computer science, NOT programming, degree, so they better as hell use it wisely.

      So what would be a bad thing for American corporations to do? Heavily investing with research funding for international schools. That would then be developing outside economies instead of simply trading with them.

  32. Re:Story has little merit... by randyest · · Score: 4, Insightful

    Can you give me a reasonable explanation beyond "they've got dark skins"?

    Sure! Because there were a lot fewer unemployed in the IT (and other) industry in the 80's and early 90's. And who has heard of any outsourcing to Russia or Israel? I haven't . . .

    See, when we have plenty of work, we don't mind sharing some of it. On the other hand, when work is scarce, people get upset when it is sent out of the country without really good reasons.

    How's that? Or would you just prefer to think everything is racially motivated? It is all the rage these days . . .

    --
    everything in moderation
  33. It's all good... by fizban · · Score: 2, Insightful

    Outsourcing is okay, people. It just drives up the quality of living in India, which will eventually drive up prices, which will eventually make it more cost-effective to do the work here.

    So, we help other countries increase their standard of living with just a bit of headache on our side.

    Anyway, the U.S. can't survive by being stagnant in technology. Our purpose is to innovate and create new technologies. Once something becomes standard and "script" it can be sent off to other countries with cheaper labor (Creating web pages is not innovative anymore, people!).

    Because of this fact, as U.S. citizens, we have to be prepared to switch careers throughout our lifetime, depending on how new technologies are evolving. For instance, the movie, computer gaming and biotech industries here are light years ahead of most other countries and good places to find tech jobs. These things are on the cutting edge of technology and not something that can be easily exported to other countries (yet). Also, small businesses (established and entrepreneurial) also need local talent as they don't have the time or money to deal with managing offshore development. Another reason why small businesses and innovation are the lifebloods of our economy.

    --

    +1 Insightful, -1 Troll. What can I say, I'm an Insightful Troll.

    1. Re:It's all good... by Billly+Gates · · Score: 4, Interesting
      ... then they will move to Africa and Russia.

      Its already happening. Indians are now viewed as expensive since they think they deserve up to 10k a year. But that nerve!

      In Russia, you could hire a Russian to do it for 7k a year. Where does it end?

      When it comes to cheap labor, there is no bottom. Only a constantly falling top price.

      Oddly when it comes to upper management and CEO's, there is always a bottom and no top in terms of compensation. Hmmm why is that?

      That means exploitation. Hey, I would have no problem if CEO's had salary caps and could compete with cheaper foriegn CEO's but this is quite unfair for the rest of us.

  34. Racist? by monk · · Score: 2, Interesting

    I believe you meant to say "nationalist." I'm not saying that's any better or worse, but by using the word "racist" you are furthering the stereotype that India is some small town where everyone is the same race. India is one of the most diverse nations on Earth.

    We should be joining with our Indian brothers and sisters and pooling our bigoty against Microsoft. ;)

    --
    [-- Trust the Monkey --]
  35. Humanistic aspect we are all missing... by red+elk · · Score: 2, Insightful

    I think people forget in this whole argument how communities, neighborhoods, cities, and states are affected when jobs are moved overseas. There is a demoralizing effect that we've seen in this country for the last 30 years. American companies have an obligation to be socially conscious about their country and to keep jobs here. Its all the circle of life and by going overseas just to say to Wall Street that earnings are up 50% is criminal. The bottom line is killing us.

  36. examples of an other approach by halaloszto · · Score: 3, Insightful

    some years ago MIT needed an enterprise authentication system, and developed Kerberos. today would it read some reports, and implement MS passport?

  37. Capitalism by 2nd+Post! · · Score: 2, Interesting

    If you play by the rules of capitalists and capitalism, the way to make it better is to make a corporation that makes good money with a good business model by not outsourcing and raping their customers; if you can do that, according to theory, there will be competitors who will spring up to steal your market and money by being more effective (at making money and satisfying customers), more efficient, or by offering a slightly better product/service/good.

    If you frame the problem as capitalism as the problem, then your only solution is to endorse cooperation instead of competition for resources. Economics tells us there are limited resources, and capitalism is the common popular method in which those resources are allocated; you compete for them. The alternative is you share the resources willingly, but no one has figured out an efficient and effective way of doing it. Invariably people in power will manage to distribute the resources inequitably, in their favor... But even capitalism does that, with the side benefit that in the process, the person with the most power happens to do something good while simultaneously becoming the biggest target for other capitalists to take down!

  38. Re:Well.. My university by DukeyToo · · Score: 2, Insightful

    I don't see what the big deal is. It would be foolish to get IT students to write business critical software, since they do not have the experience.

    Let them graduate, and work under an experienced team lead, and then, IF they can make it cheaper than I can buy it, they can have the job.

    --
    Most writers regard truth as their most valuable possession, and therefore are most economical in its use - Mark Twain
  39. Re:Story has little merit... by swb · · Score: 4, Insightful

    Of course the story does have merit if "India" eq "Bad", and if that's the racist slant the Slashdot is pushing on its front page then the editors should reconsider.

    Why is being opposed to shipping jobs off to India automatically the equivilent of being racist? That's really an unfair way to attempt to color the debate about where this work should be done and by whom.

    In fact it can be argued that shipping jobs overseas is *more* racist than keeping them here. By increasing the demand for IT work in the US, you draw more workers to the field, either from the pool of the unemployed or from other fields. Since more are likely to be drawn from other fields, you actually create openings for jobs, and these new openings could actually be filled by minorities and others who have a longer history of underemployment.

    By shipping formerly high-paying jobs to India, you increase pressure on "good" jobs here in the US and decrease the opportunity for minorities here in the US.

    I was actually hopeful in the late 90s that perhaps we were at the point where employment demand would reach a point where we could get the unemployment levels down for minorities to levels consistant with whites now. I guess not, I guess we care more about Indians than Americans of all colors.

  40. Give a man a fish.... by GreenCrackBaby · · Score: 2, Insightful

    What's happening in India is great, and I'm happy to see such a poor country starting to pick itself up. However, I'm amazed that American companies are getting in line to setup shop there. Sure, the savings is a huge incentive, but at the same time you are allowing them to soak up all your IP, all your American business methods, essentially training them how to run a successful company.

    That's great until the day that Indians realize that there's nothing stopping them from setting up their own companies to compete direct against the American ones. I'm actually surprised it hasn't started happening already.

    Reminds me of that old saying "Give a man a fish and you feed him for a day, teach him how to fish and you feed him for life." That system works great -- unless you too are a fisherman.

    --

    "The market alone cannot provide sufficient constraints on corporation's penchant to cause harm." -- Joel Bakan
    1. Re:Give a man a fish.... by Dielectric · · Score: 2, Funny

      I've heard it differently.
      Give a man a fish, and he owes you one fish.
      Teach a man to fish, and you give up your monopoly.

      That seems to fit better here.

  41. Follow your job by castlec · · Score: 2, Informative

    The only thing I can say is that humans migrated for years and years either following their food or finding another. Your food is moving, either follow it, or find another. Pick up a language (read: not computer language) and move to another country. You'd be surprised what value a native english programmer has in another country. No you won't make the same amount of money as in the US, based on currency exchanges, but you'll never wonder where your next meal is going to come from and you'll probably even be happy. If you really mess it up, you may even pick up some culture because we are not all that is to be in the world. Those of you that don't want to move, you are doomed to an inevitable fate. Start taking those management courses because your job is on its way out the door. If you want to code for a living you'll do what it takes to do so but whining about it will get you nothing.

    --
    When I tell an object to delete this, am I killing it or telling it to kill me?
  42. The sad part... by StewedSquirrel · · Score: 2, Insightful

    If it really is a static content system with a very basic CMS framework....

    Where did $11 million go to?

    That's a $400 project you just described... assuming students would voulenteer to help set it up (which they would and probably do it well)

    Sad example of spending money "because we have it" if you ask me.

    Stewey

    --
    There are 10 kinds of people in the world. Those who understand binary and those who don't.
    1. Re:The sad part... by alexborges · · Score: 2, Insightful

      Well, thats the point. Its no great CMS system even if its worth the 11 million.

      The bulk cost of a CMS deployment is in:

      a) Content Modeling (including roles, workflows...etc)
      b) Custom made interfaces if needed (if teachers are to submit their stuff themselves and the content is then automatically handled)

      It wouldve costed some millions, yes, because content modeling wouldve costed the same regardless of platform, same it goes for the interfaces.

      Still, the question is, what part of the cost is licensing?

      Youll find that a lot of it is. India is microsoft's saviour because americans use microsoft. If people dont cost, then i can afford the licensing.

      Why didnt an american company get the project? Because gardner said microsoft was a better choice, so instantly, we have to go to india.

      An american company couldve implemented this in OSS perfectly, probably with a larger feature base (not because its american, but because its using open source). They didnt choose an american company because it would be to expensive to do it in america with microsoft software.

      Now what will really bake your egg, is that indians will do it in OSS if they have to compete with americans doing it in it as well. With the same or better workforce quality (indian school system is something to be proud of) at a fraction of the cost.

      --
      NO SIG
  43. Re:Think Before Preaching! by Anonymous Coward · · Score: 2, Interesting

    well, that's pretty silly. the h1-b program is designed to fulfill a shortfall of jobs in the US. which is why from a quota of several hundred thousand annually, during the boom years, it has been cut back all the way to 60,000 or so today. not to mention that coming INTO the US has become a major pain with all sorts of biometric tracking and other scary 1984-style gimmickery.
    there is no such shortfall of programming talent in the sub continent, so why would they have an h1-b visa program? there are the more usual ways of immigrating to india (just as for most other countries, including the US). the H1-B was not designed as a pro-india thing, but rather, a "increase the supply of skilled labourers to keep salaries down in the US" thing.

    anyway, if you are willing to move to india and live on a regular salary, you don't need an h1-b equivalent program. just find a job and get your employer to write a business visa sponsorship letter to the indian (or pakistani, or other embassy of your choice) and you will be allowed to stay there for a finite amount of time, linked with your job. that is exactly the same as h1-b. and you wont be fingerprinted on your way in, like many h1-b workers are, in the US.

    have you tried migrating to the subcontinent or was this more of a rhetorical point? people from other countries who really really want to, move to the US illegally. so if you are really that much in need of a job in india, that's one option that's open to you, besides all the legal visa routes. and your odds of never getting caught are pretty much 100%. nothing against the indian immigration service, but frankly, they really don't care much about catching you. for now, americans moving to india looking for employment is not that big a trend (kind of like the irish moving to the US in the early years). you can expect more "attention" and orwellian schemes to track you as an "alien" in India when more americans start moving there.

    good luck!

    p.s> i am not from india, but i am told that people in the south of the country are more pleasant, better educated and less "aggressive". you may want to consider hyderabad, rather than delhi, for instance.

  44. not really... by User+956 · · Score: 2, Insightful

    Heh, the University I attended wouldn't hire any of their graduates either ... but it shows the faith the Uni had in its own undergrads.

    Perhaps they had faith in their undergrads, but were trying to prevent a university monoculture from forming. A lot of times Universities prefer people from the "outside world" simply because a more diverse work environment is often a more dynamic work environment.

    It may work out that people of the same education, from the same University can get the job done, but they might also overlook alternate/better methodologies.

    --
    The theory of relativity doesn't work right in Arkansas.
  45. It's funny by DroidBiker · · Score: 2, Funny

    You never see a company outsourcing its senior management functions to save money. I wonder how much a company like Disney would save if it laid off Eisner and gave his job to an MBA in India.

  46. if outsourced software makes news by superfast-scooter · · Score: 2, Interesting

    why dont we hear bout all the far-eastern electronics and hardware that come into this country?

    wasn't buying a japanese car sometime in the 60's and 70's also frowned upon? maybe it is not explicitly said that it is, but just by reporting it, you knowwww what is implied by the speaker.
    maybe everytime someone buys a sony discman or a toshiba laptop, we should write it in our blogs, and raise our eyebrows and smirk a bit.

    Forget outsourcing - I'm more surprised that MIT actually had to look and spend outside its own doors for setting up a CMS. any decent grad student woulda done it - not really a big deal. Ironic that a programming job for the EE/CE/CS department had to be given to an outside firm.

    Being a student, who's always lookin for jobs related in my field to put in my resume, I would be pissed to learn my department spends money on any firm while I apply for a loan, and look around for a job.

  47. Re:Why, oh why by NickV · · Score: 3, Interesting

    NCompass was bought by Microsoft awhile ago. In fact, NCompass Resolution is basically Microsoft Content Mangement System.

    Go to ncompass.com yourself...

  48. and it's not even funded by Microsoft by penguin7of9 · · Score: 2, Informative
    The irony is that OCW isn't even funded by Microsoft:

    MIT OCW is a large-scale, Web-based electronic publishing initiative funded jointly by the William and Flora Hewlett Foundation, the Andrew W. Mellon Foundation, and MIT.


    That's even though Microsoft has been trying to get into MIT.

  49. Re:It all SOUNDED good...... by iggymanz · · Score: 4, Interesting

    actually, U.S. corporations are starting to have second thoughts about all the outsourced jobs:

    1. Much greater overhead to manage an oversees project, such that the savings is really 2. Huge assumed risks - confidentiality of data, true abilities and qualifications of remote people questionable, political instability & nearness & greater accessibility by terrorists in region, lack of legal venue when things go wrong
    3. faking of true status/costs/issues of projects by those who strongly reccommended outsourcing, to save face
    4. Communication problems, lack of cultural context & "common sense [by whatever definition]" knowledge

  50. This makes me worry... by EulerX07 · · Score: 4, Funny

    ...that they would outsource my job to someone that wouldn't be reading slashdot right now and would actually be working.

    Darn! Gotta go, the boss is walking this way!

  51. Speaking as a recent MIT grad ... by richard_willey · · Score: 4, Informative

    ... I have a couple observations:

    #1. Odds are the reason that the development work got outsourced was simple comparative advantage. I'd rather have an undergrad or grad student working on something original and interesting rather than grunt level coding. As many people have noted, low-level jobs are being outsourced rather rapidly. I consider it a very GOOD thing the MIT isn't wasting its student's time with what would appear to be a dead end skill set.

    #2. If you want to bitch about MIT and ties to Microsoft there are much better areas to criticize. For example, the business school is a lock-down Microsoft shop. If you don't have a Microsoft OS, you can't get a digital certificate. If you can't get a digital certificate, you can't get access to anything from your home PC. I've heard a wide number of speculations about why this is so [the rest of the University has a much more liberal policies]. I've heard lots of talk that Sloan needs to maintain its own IT department to roll out like 802.11b quicker than the rest of the University. Of course those who like conspiracy theories do note that the Dean made a fair amount of money as a hired witness for MS during the anti-trust trials.

    1. Re:Speaking as a recent MIT grad ... by BeerMilkshake · · Score: 2, Interesting

      > If you don't have a Microsoft OS, you can't
      > get a digital certificate. If you can't get
      > a digital certificate, you can't get access
      > to anything from your home PC.

      What are you saying?!? Anyone can get a digital certificate (from Verisign, Entrust, ...) as long as you pay the yearly fee; it doesn't matter what OS you use.

      Also, you can use SSH to get into your home PC and transfer files around.

      I find this whole discussion about M$ and MIT very disturbing. The part that bothers me the most is MIT's ignorance.

  52. My experiences in this... by Mysticalfruit · · Score: 4, Informative

    Having spent nearly 10 years working on my Comp Sci degree (while working at a 8-5 job, house, etc) I've realized something.

    Universities are a bit like ancient japan.

    All departments are like little islands in a sea. Each has a ruler that does their own thing with no consideration to the other islands.

    Firstly, nobody talks to anybody. If a process can be duplicated and screwed up at the same time, it will be.

    Secondly, All processes will be documented in such a way that people from other departments will have no idea how to interpret or use them.

    Thirdly, when purchasing software licenses and/or hardware, instead of pooling all the resources to drive down costs, each department will just do their own thing.

    So, it doesn't suprise me that MIT pissed all over their own shoes.

    MIT's got students who put together a grant and bought 3000 CD's, then setup a system where students could listen to any of them over the cable network for free.

    Somehow I don't think the courseware stuff would have been that over their head.

    I took a class in management of software engineering projects and we had to build a web interface that would allow students to access their grades, add/drop for classes, give them billing information, etc. We managed to crank out that system in one 15 week semester. We all got A's and the system worked great for over 5 years and it cost them zero. Even the server it ran on was a retired desktop (350mhz pentium 2)

    It didn't get retired until the university moved away from their aging db system.( Digital unix based collegate DB system)

    Tragically, the expensive commerical system they replaced it is horrible and disliked by everybody.

    --
    Yes Francis, the world has gone crazy.
  53. rip: golden age of american software development by circletimessquare · · Score: 4, Insightful

    rest in peace, american software development.

    long live global software development.

    i can give you for a $1.00 what you pay someone else $10.00 for.

    what would you do?

    fighting globalization is like fighting the tides or the rising and setting of the sun, it is inevitable.

    i see the regular stream of stories like this one here on slashdot and i see the fear and horror implicit in them.

    yes, my friend, you will make less, you will be fired, it really, really is the end of the golden age of american software development- and that is good! for now it is a global thing, you will sacrifice so that the world may benefit. only if you are stridently inward and protectionist and reactionary do you not see how this is a good thing overall.

    you can't do anything about it, nor should you try: don't waste your energy fighting inevitable change.

    "God give me the serenity to accept things which cannot be changed;

    Give me courage to change things which must be changed;

    And the wisdom to distinguish one from the other. "

    so what would you do if you weren't working in software?

    ask yourself that seriously now, american software developer.

    --
    intellectual property law is philosophically incoherent. it is your moral duty to ignore it or sabotage it
  54. What choice? by d-rock · · Score: 2, Insightful

    It sounds like they just went with what Gartner spoonfed them. If I ran MIT's IT department I would sack the planning department and hire a work study student to make decisions by reading gartner reports. Instant $2 million savings...

    Derek

    --
    Don't Panic...
  55. Programmers are commodities by Brad+Lucier · · Score: 4, Interesting
    We recently had a similar discussion among the CS faculty at Purdue recently. It was prompted by the following:
    [insert name of large US company here] is not recruiting CS undergrads from Purdue or in the US, generally. This is true for a number of other multinational companies. The stated reason? Those companies can get graduates of similar quality from schools in India, China, Russia, and elsewhere in the world -- and they can be employed after graduation for 1/3 of the cost of a US employee. This is why [said company] is relocating their IT operations outside of Northern Europe and the US. They still recruit from the very best undergrad programs in the US, but even that is in smaller numbers.
    My response:
    Companies like to turn their economic inputs into commodities, and add as much (chargeable) value as possible to their outputs. To them, programmers are commodities (by using "standard" languages, having mediocre goals, demanding interchangeable skill bases, etc.), and commodities compete on price alone. If we want our graduates to be able to compete in such a market, we have to make sure they have skills that raise them above the "commodity" level.
  56. conflict of interest, anyone? by scorilo · · Score: 2, Interesting
    One aspect that nobody seems to be considering is conflict of interest. Perhaps the people in charge of OCW reasoned that some students may not feel too good about making courses for which they pay quite a lot to be made available for free to anybody with an Internet connection. Indian programmers may be very interested in precisely this development.

    Please note that I am not inferring that students feel that way, but rather that management may have considered this possibility in their decision making.

    --
    "One of the symptoms of an approaching nervous breakdown is the belief that ones work is terribly important." -BRussell
  57. The project was on time and under budget... by pgreenspun · · Score: 5, Informative
    Hmmm... I never thought this little blog entry would get Slashdotted. Really I hadn't intended to criticize the decisions MIT made. The project met its goals on time and under budget. The selection of 100 percent Microsoft tools was apparently a smart choice. Had it been my project I would have perhaps added some goals, e.g., more of an online community aspect for the front-end and easy to package up all the software behind the service to give away to other schools. These goals might have led to some different decisions on tools or perhaps not. Actually one nice thing about Microsoft tools is that you are guaranteed that most people will be willing to adopt them.

    One of the things that we try to teach in the class (textbook is online at http://philip.greenspun.com/internet-application-w orkbook/ if you're curious to see what the students suffer through) is that being a good code monkey/CS nerd isn't sufficient to function well as an engineer. We try to give the students some experience with taking vague client specs and turning them into precise requirements, with presenting their work clearly, with constructively criticizing others' work in meetings, with conducting and learning from user testing, etc. The rationale for this is laid out in http://philip.greenspun.com/teaching/one-term-web

    So it was actually very gratifying that our guest speakers came in and demonstrated that state-of-the-art American IT development projects no longer involve plain-old-programmers in America. Our students need to learn this early so that they can plan their careers and further education accordingly.

  58. Where the blame belongs by Anonymous Coward · · Score: 2, Insightful

    You can blame India for all this, but have you ever thought why the CEO gets multi million dollars in "incentives" to make decisions to fatten the corporate greed? In times of belt tightning, why dont they cut the CEOs benefits instead of laying off hundreds of others that dosent even add up to the cost of the CEO. All this blame should be directed at the corporate greed, and we should really question if paying millions of $ for a CEO is woth it in the first place... fter all, they only play golf and go suck ass with other CEOs that try keep the bisness running in the "old boys club." This is as a good time as any to really question the compensation of CEOs and the value they add to a company.

    1. Re:Where the blame belongs by HiThere · · Score: 2, Insightful

      It's called power politics.

      It's one of the reasons unions were originally formed. They get a lot of bad press, and sometimes earned it (they sometimes have corrupt bosses, and frequently defend their member right or wrong). But when you don't have them, this is what you get. Enjoy.

      The basic fault here is with the government. All levels, getting worse as you near the feds. They systematically favor those with power over those without power. This means, if you know what's good for you, you scheme to get power. Forget right or wrong, the govt. doesn't care about that. Forget the laws. The govt. doesn't care about that. (Well, actually you need extra power relative to those you injure if you get caught breaking the law, so don't really forget about them. Just pay careful attention to when you NEED to pay attention.)

      If I'm cynical, and I admit it, it's because I've observed a bit of history. And read about a bit more. And done a few logical projections... UGH!

      --

      I think we've pushed this "anyone can grow up to be president" thing too far.
  59. Re:I'm starting to come around in my way of thinki by Coryoth · · Score: 2, Insightful

    The outsourcing always seemed pretty simple to me. In the US market there wasn't that much real differentiation between code monkeys and software engineers. Basic programming isn't that hard, yet in the US market people demanded a fair amount of money for it. Then along came India. They have a lot of very competent basic programmers who are willing to work for a rate that's quite resonable given the fairly low/basic level of work they're doing, so naturally all those overcharging US code monkeys suddenly find their jobs being outsourced.

    The catch is that outsourcing became fairly trendy, and the whole thing is still in flux. That is to say, management still doesn't really understand the difference between code monkeys and engineers. That means engineering jobs are getting shipped to code monekys at present. That's somewhat problematic, but it won't last, because the results won't stack up - eventually (this is management we're talking about, so it'll take a few years) this will dawn on the management and things will swing back closer to balance.

    The fact remains that this outsourcing began because there are a lot of US code monkeys charging far too much for their shoddy work - just think of all those VBA "I'll make you a frontend app for your database for $10,000" 'hackers', and their ilk.

    Jedidiah.

  60. Re:Another Perspective on Jobs Lost Overseas by jazman_777 · · Score: 2, Insightful
    It would seem that way. But what happens when americans can't even afford to buy the stuff at WalMart anymore?

    It's hard to imagine that happening. There are things worth doing, and there are lots of Americans, so somebody will pay them something to do those things. People are still the best, most valuable, resource. Unless they're idiots sitting stupefied in front of TVs.

    --
    Slashdot: Failed Car Analogies. Amateur Lawyering. Anecdote Battles.
  61. Here's a reality check. by Chris+Burke · · Score: 4, Interesting

    Cost of living in India is vastly lower than it is in the U.S. There is no possible way that I can compete with an Indian programmer on the basis of pay, unless I emigrate.

    Being forced to compete with others on a completely unequal scale is a downside. That's why the U.S. is being threatened with sanctions over its steel tariffs. It makes it really hard for foreign nations to compete. Ya dig?

    That's the fundamental problem. We have an unequal playing field, and in an environment where cost is valued over all else it isn't a competition, it's a blowout.

    I really, really hope that globalization can help India and other countries boost their economies and develop themselves into the "1st World" nations they can be*. I just wonder what damage it will do to our economy in the meantime.

    * Since outsourcing is only one half of the coin, the other half being U.S. companies sucking money out of developing nations, I don't think this is certain at all.

    --

    The enemies of Democracy are
    1. Re:Here's a reality check. by k_187 · · Score: 4, Insightful

      Being forced to compete with others on a completely unequal scale is a downside.

      No, equaling out the scale is what globalization is. The idea behind the global market is that comparative advantage will take hold and the places that are better able to produce a given type of product will produce that product. One can argue whether this is the case in the current example, but what you're talking about amounts to bellyaching. What globalization is, is vastly different than what everyone is expecting it to be. Things won't stay the same and new markets will be opened up. This is what you're calling a downside (and the US with its steel tarriffs). That's the way it works. If the Indians are better at programing because of labor costs (which is how things appear), then the American programing industry will wither and die and move to India. Sorry, but tough. Economics isn't called the dismal science for no reason.

      --
      11 was a racehorse
      12 was 12
      1111 Race
      12112
  62. ...Thanks to Brute Force + Microsoft Help by theodp · · Score: 2, Informative

    In MIT's words: For the "proof of concept" pilot...the Web pages of the MIT OCW site were built by..."brute-force HTML." Utilizing Web content editors such as DreamWeaver, a team of programmers from MIT and Sapient...designed and built the first 32 subjects. However, that model was not scalable for 500 courses, so MIT OCW has implemented a Content Management System (CMS) in order to achieve MIT OCW's long-term publishing goals. The CMS we have been using since the beginning of 2003 is a customized implementation of Microsoft Content Management System 2002...there wasn't a viable open source solution...Microsoft made a serious commitment to the MIT OCW project...The hope is that utilization of open-source model CMS products could lead to less expensive implementations...

  63. Get real. by twitter · · Score: 2, Insightful
    India offers a service of the same quality for a lower price... you must either lower your price or offer something better...

    The people who hired Sapient were without a clue. Instead of consulting their own faculty or students, the idiots read a Gatner report and bought Microsoft snake oil. It was a typical big dog decision, breathtakingly ignorant and a hopless waste. The whole thing will have to be redone in two years when M$ decides to move the upgrade train along and another $2,000,000 will go to the big dogs while $10,000,000 is shoved into a company that will doll out a few hundred thousand bucks in India where slaves will bang out Microsoft shit. The platorm and contractor were chosen based on a single report that said this was the "easy" way to go. There was no real study, no real consideration of quality or cost.

    Our unemployed friend and the people who made the $12,000,000 grant are right to expect more. The project is a great idea, it deserves to be implemented well.

    --

    Friends don't help friends install M$ junk.

  64. WTF? by theolein · · Score: 2, Funny

    I'm not even American and I shudder with rage reading this bullshit. So basically what he is saying that he and his crew were simply too fucking lazy and stupid to do anything else than use Microsoft's software because Gartner, which is known to be the biggest bunch of brainless thieving fucks in the so called consulting industry, said to do so, and then to go and outsource the whole fucking thing to save the extra money that was spent on buying Microsoft software.

    Con-fucken-gratulations

    But the best and most violently disgusting bit is when he says that this state of the art course at MIt is basically telling those MIT CS students who pay around $29k a year, that they will have no fuckin jobs when they leave.

    This must give the word "student" a whole new meaning: Future MacJob applicant!

    If it was me I would organise a lynch mob on campus for pricks like this. Then I would leave school at take a course on plumbing.

  65. Re:Supply and Demand by Billly+Gates · · Score: 2, Interesting

    The answer is easy.

    supply and demand. Anyway can flip burgers so McDonalds pay less. However not everyone can be a programmer or I should say a good programmer so wages were up in the 90's.

    Microsoft is clever at this when they oversupplied the market with Office and then IE to bring its value down.

    After competitors went under they brought the price back up. Wallmart does this illegally as well when they move into a new area to compete agaisnt local small and mom pop shops.

    What happened was the H1B1 boom upped the supply and brought down demand. Then corporate america threw in Indians, Russians, and Chinesse to super oversaturate the market!

    Now as an IT worker you are competing with so many people, that the specialized skill becomes generic and so does the salary just like the kids who apply at McDonalds. Loads and loads of developers for each position. So why should you pay more?

    My answer to this is simple and goes agaisnt the current policies of free trade. CUT SUPPLY.

    Put in tarrifs that make Indians almost as much as Americans. After this you will now be able to pitch to a boss easier with less applicants competition which in return raises the salary.

    I think this may happen only when CEO's aka campaign contributers begin to look as expensive commidities. After all Indians have MBA's as well as CS degree's right? They only lack experience. As soon as management gets outsourced then cheaper CEO's will be born and bite the greedy bastards in the ass.

    Of course that is a few decades away but I think it will ultimately happen unless things change in the current business climate.

    Last, what is to not stop American businesses from totally moving to India? Think about? You would make many times over your current salary as a CEO in billions from shareholders!

    If that happens you can bet their competitors will do the same to remain in business. Then you will have no jobs left here and tarrifs and protectionism will return.

  66. Close enough, but... by The+Cydonian · · Score: 2, Informative
    Congratulations, you've just described a policy concept known as 'technology leverage', a concept that semi-conductor companies successfully implemented in the late-80's and 90's, to prop up the semi-conductor industries in the so-called Asian Tiger economies. It's also the same concept by which, say, Suzuki brought its manufacturing base to India, and Hitachi (?) bringing its mass-transit-trains manufacturing to India (Delhi's new metro system, for instance; the first trains there were all imported, but soon, they'll be locally manufactured. With this knowledge transfer, urban transport infrastructure development in India would be so much more simple, both in cost terms and in expertise).

    Just that, this is not what's happening with regards to software outsourcing to India.

    Remember, most of the software/call-center outsourcing is actually handled by Indian companies; American companies (such as Accenture, IBM Global Services etc) have setup shop in India only recently. That is to say, Indian companies have already reached world standards (or have tried to) in order to compete with international (outsourcing) companies. A fine distinction, but crucial, especially given the rise of China as an IT (as opposed to manufacturing/FDI) challenger; it would mean Indian companies have the skills and resources to compete on their own terms.

    That said, you're right; there is a lot of technology leverage in other growth spheres as well. Low cost drug research, for instance, is one market that's looking exceedingly big if you are an Indian policy analyst, and for sure, it will infuse "true" R&D skills into India's generic drugs industry. But for outsourcing per se, I don't think there's any technology leverage here.