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Offshoring IT

prostoalex (Alex Moskalyuk) writes "After the Presidential election process and U.S. foreign policy directions, outsourcing is a topic guaranteed to stir up heated debate. Bill Blunden's Offshoring IT is not a 'how-to' guide, as one might expect from the title. It's a collection of stats, figures and opinions on outsourcing information technology to foreign providers." Read on for the rest of Moskalyuk's review; watch out too for my upcoming review of N. Sivakumar's Debugging Indian Computer Programmers: Dude, did I steal your job?. Offshoring IT author Bill Blunden pages 138 publisher Apress rating 5/10 reviewer Alex Moskalyuk ISBN 1590593960 summary The good, the bad and the ugly (but mostly the bad) on IT offshoring

Bill Blunden is the author of Cube Farm - a humorous autobiography and story of author's fruitless employment at Lawson Software. A physics major faced with the grand prospects of waiting tables after college graduation, Blunden is not a newbie in the unemployment world. Offshoring IT promises to give the reader "the good, the bad and the ugly" of IT outsourcing practices.

The book is not very long -- just five chapters -- but it's thorough, as each chapter packs data and statistics from various government and commercial reports. "Setting the stage" talks about general trends in the software industry and cost of education. "Measuring the trend" tells the reader which companies outsource, why they outsource and who's helping them with outsourcing. "The Offshoring Obstacle Course" describes existing outsourcing processes - when exactly should company start thinking about outsourcing, what type of jobs is most likely to go offshore, what's the difference between India, Ireland, Israel, Russia and Mexico. Finally, "Arguments in Favor of Offshoring" made it into the book just because the publisher requested a fair look at the other side's arguments (which shows which "side" Mr. Blunden is biased towards). "Arguments Against Offshoring" is truly the author's work with major myths and excuses about offshoring debunked.

Blunden points out that in order to compete in the global marketplace, countries like India invested in their educational system and constructed high-speed data networks, which provided the foundation for companies popping up with the capability to take over remotely as call centers, software development houses, and R&D departments. Meanwhile, the cost of going to Ivy League schools keeps going up, leaving the fresh graduates with six-digit debt -- debt which the Student Loan Corporation (division of CitiCorp) expects to be promptly paid. The cost of college education for those who choose to go this route stipulates adequate pay requirements after graduation, and in the world where IT is going offshore, the paycheck is often just not there anymore, which leaves the fresh grad owing money and needing immediate retraining or a career switch.

The book delves into specific industries and companies, looking at the outsourcing numbers and potential for jobs to be offshored. Blunden notes that while corporations made their offshoring figures public before, lately the backlash against going offshore has made PR departments suddenly avoid the topic. Blunden refutes the argument that only low-level jobs are being outsourced and points to Intel designing CPUs for wireless devices on campuses in India.

Chapter 3 focuses on reasons for outsourcing. According to Blunden, the more face-to-face interaction and management effort a job requires, the less likely it is to be outsourced. At the same time, many companies are currently exploring offshoring some of their projects, claiming that only non-essentials are going abroad. Outsourcing of small projects allows them to establish the necessary processes and test their service provider, so that when a bigger project comes along, the management can feel safer working with the same offshore provider.

Chapter 4 deals with pro-offshoring arguments. Even though the author states he only had to write this chapter to satisfy the publishers, the arguments he picks are ones that appear in the press quite often - namely, that offshoring means more efficient allocation of resources, better revenue projections, and increased shareholder value. In Chapter 5 Blunded goes on a crusade to discredit these arguments, though, saying that offshoring does not benefit average Americans, that only the top 5% of income earners benefit from increased shareholder values, and that frequently top management receives additional benefits while laying off the proles.

While the first two chapters of the book are filled with data, numbers and statistics, the last three chapters mostly read like an rant on the current state of affairs, which many of us may have gotten for free from the older members of the family at Thanksgiving. Blunden does have some valid arguments about the increased danger to national security and wealth due to offshoring, but you can't help but notice the feeling that the author feels entitled to a job provided by an American corporation, even though corporate America is bad-mouthed in the next sentence. To give Blunden credit, he mentions that sometimes reasons for offshoring include the low popularity of call-center and data-entry positions in the U.S. Americans view doing support for AOL and data entry for Cingular as grunt jobs, just temporary positions on the way to a better life, while for many Indians it is the ultimate career, and are thankful to the provider for giving them the opportunity.

Blunden also does not distinguish between different types of IT workers. The aforementioned AOL support soldier and top NASA scientist, designing microcontrollers for the next space mission would be aggregated into the same "IT worker" category. There's little detailed statistics on what sectors of IT are prone to outsourcing and which are pretty stable to be in. Sometimes the author plays little tricks with the reader to make his points across. On p. 106 he talks to an invisible IT manager: "Sure, you can hire six Indian engineers for the price of an American engineer. But if an American engineer can do the work of six Indian engineers, what's the difference?" Oops. Notice how by the time we get into the second sentence the equality in price gets substituted by equality in productivity. Just because 6 Indian salaries would equal to one American, the author assumes the productivity level is going to stay the same, making the example nonsensical, since why would you outsource if it's the same money and the same productivity?

Overall, it's an interesting book to read, although somewhat depressing, as it provides little pointers into how do the readers stay competitive in this marketplace or what needs to be done on the personal skills level to make oneself more valuable. You can definitely tell which side the author is leaning, but subjective writing makes the reading more interesting. Nevertheless, the title does leave an impression of being one giant complaint about the current state of affairs, and I don't think I will be re-reading it. Perhaps just loan it to my friends, who are in college pursuing IT-related careers.

In an attempt to stay up-to-date with his skills Alex reads and reviews many programming and technology as well as keeps the list of free ones available on the Web. You can purchase Offshoring IT from bn.com. Slashdot welcomes readers' book reviews -- to see your own review here, read the book review guidelines, then visit the submission page.

4 of 369 comments (clear)

  1. ECON 101 for techies by Anonymous Coward · · Score: 0, Troll

    These offshoring posts are getting a little tired.
    We've been paid very well for what most of us know deep down is idiot work.

  2. A bit of socialism by SJasperson · · Score: 1, Troll

    A more careful reviewer might have deduced from Blunden's references to "our society's class structure" right at the start of the book that he's an out-and-out socialist, which certainly colors his analysis.

    --
    Sigs? Sigs? We don't need no steenkin' sigs.
  3. Re:Outsourcing made simple by mankey+wanker · · Score: 1, Troll

    DEFEAT THE RIGHT IN THREE MINUTES

    http://www.conceptualguerilla.com/beattherightinth ree.htm

    Have you got three minutes. Because that's all you need to learn how to defeat the Republican Right. Just read through this handy guide and you'll have everything you need to successfully debunk right-wing propaganda.

    It's really that simple. First, you have to beat their ideology, which really isn't that difficult. At bottom, conservatives believe in a social hierarchy of "haves" and "have nots" that I call "corporate feudalism". They have taken this corrosive social vision and dressed it up with a "respectable" sounding ideology. That ideology is pure hogwash, and you can prove it.

    But you have to do more than defeat the ideology. You have to defeat the "drum beat". You have to defeat the "propaganda machine", that brainwashes people with their slogans and catch-phrases. You've heard those slogans."Less government", "personal responsibility" and lots of flag waving. They are "shorthand" for an entire worldview, and the right has been pounding their slogans out into the public domain for getting on forty years.

    So you need a really good slogan - a "counter-slogan" really, to "deprogram" the brainwashed. You need a "magic bullet" that quickly and efficiently destroys the effectiveness of their "drum beat". You need your own "drum beat" that sums up the right's position. Only your "drum beat" exposes the ugly reality of right-wing philosophy - the reality their slogans are meant to hide. Our slogan contains the governing concept that explains the entire right-wing agenda. That's why it works. You can see it in every policy, and virtually all of Republican rhetoric. And it's so easy to remember, and captures the essence of the Republican Right so well, we can pin it on them like a "scarlet letter".

    Is there really a catch phrase - a "magic bullet" - that sums up the Republican Right in such a nice easy-to-grasp package. You better believe it, and it's downright elegant in its simplicity.

    You want to know what that "magic bullet" is, don't you. Read on. You've still got two minutes.
    Right-Wing Ideology in a Nutshell

    When you cut right through it, right-wing ideology is just "dime-store economics" - intended to dress their ideology up and make it look respectable. You don't really need to know much about economics to understand it. They certainly don't. It all gets down to two simple words.

    "Cheap labor". That's their whole philosophy in a nutshell - which gives you a short and pithy "catch phrase" that describes them perfectly. You've heard of "big-government liberals". Well they're "cheap-labor conservatives".

    "Cheap-labor conservative" is a moniker they will never shake, and never live down. Because it's exactly what they are. You see, cheap-labor conservatives are defenders of corporate America - whose fortunes depend on labor. The larger the labor supply, the cheaper it is. The more desperately you need a job, the cheaper you'll work, and the more power those "corporate lords" have over you. If you are a wealthy elite - or a "wannabe" like most dittoheads - your wealth, power and privilege is enhanced by a labor pool, forced to work cheap.

    Don't believe me. Well, let's apply this principle, and see how many right-wing positions become instantly understandable.

    * Cheap-labor conservatives don't like social spending or our "safety net". Why. Because when you're unemployed and desperate, corporations can pay you whatever they feel like - which is inevitably next to nothing. You see, they want you "over a barrel" and in a position to "work cheap or starve".

    * Cheap-labor conservatives don't like the minimum wage, or other improvements in wages and working conditions. Why. These reforms undo all of their efforts to keep you "over a barrel".

    * Cheap-labor conservatives like "free trade", NAFTA, GATT, etc. Why. Becau

  4. Xenophobic? by al912912 · · Score: 0, Troll

    Here I am, the mexican from the third world country who will take your as programmer and my paisano will take your plumer's (malicious laghter). There's your globalization. Americans finding out there are people willing to work more for a living than they are. You shouldn't be that afraid my globaliphobic gringo friend, even though it is true that USA will loose its position of power over the world order, the world as a whole is moving to a better situation, specially because there will now be various spheres of power which will compensate and balance one another (US, EU, and China). Now the US will not be able to do as they please over the world. Finally, the day has come!! (malicious laughter continues)