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Mumbai Bombings Give Outsourcing Community Pause

theodp writes "eWeek reports that the big fear of offshore outsourcing customers has become a reality: a major bombing attack in an outsourcing hub. In the wake of the attack, companies are considering their resources and preparedness. Despite understandable fears, people on the ground don't seem to think these latest attacks will have a long-term effect on the growth of India's tech sector." From the article: "The terrorist attack in Mumbai--and conflict between Israel and Lebanon for that matter--raise a series of questions for companies sourcing technology globally. Do you know the disaster recovery plans of your offshore services provider? Are their plans integrated with yours? And how prepared are these providers? "

31 of 248 comments (clear)

  1. Come on, guys.. by consonant · · Score: 3, Funny

    I know /.ers aren't too pleased with all this outsourcing, but isn't this reaction a bit extreme?

    1. Re:Come on, guys.. by tomstdenis · · Score: 4, Insightful

      No, it raises a very good question.

      Are they ready for it? You can't just pick any non-industrialized nation, point and say "this is where our billion dollar software project will be made."

      I'm not saying smack about India [cuz frankly I've never been there] but if the region isn't ready for the business in terms of economic, academic and political stability then maybe it isn't wise to DEPEND on them for your business?

      It's one thing to ADD to your team with developers from other nations, e.g. setup a firm in Ireland or HK or something. It's another alltogether to depend solely on foreign assets.

      Frankly I like the idea of spreading jobs around the globe, but only if the recipients are actually qualified to do the job. And while I like beating up on the average lame india post [see comp.lang.c] I'm not foolish enough to think that North Americans are all that much better in that regard.

      Tom

      --
      Someday, I'll have a real sig.
    2. Re:Come on, guys.. by Eternauta3k · · Score: 5, Insightful

      not industrialized != politically unstable. look at uruguay, it's a fucking haven.

      --
      Yeah. Would you choose a neurosurgeon who pokes around people's brains in his spare time? I wouldn't.
    3. Re:Come on, guys.. by LiquidCoooled · · Score: 3, Insightful

      Tom, this problem is not about outsourcing, remember there were firms caught up in the 9/11 attacks whos disaster recovery plan was to store important documents in the other tower.
      You are right that companies should spread and test their disaster recovery and ensure that whatever one branch or department has, the others have access to in a disaster (even if its locked up in the company vaults around the world).

      We have had terrorist bombings (and other more mundane disasters) come along and wipe out entire populations and companies and I am sure that there will be more, whether its India or the North pole we need to be vigilant.

      --
      liqbase :: faster than paper
    4. Re:Come on, guys.. by sakielnorn · · Score: 3, Insightful

      At this point, what nation can you really rely on for "economic, academic and political stability"? There were terrorist arrests in Toronto... cue Jon Stewart on the people who hate Canada: "Saying `I hate Canada' is like saying `I hate toast'." No matter what type of bread you are though, it seems someone is out to get you. It seems increasingly clear that you can't rely on anyone to provide a completely safe environment, and concentrating all of your assets in one location is an invitation to disaster.

    5. Re:Come on, guys.. by dhruvx · · Score: 4, Informative

      Excuse me. I am an Indian and I live in Mumbai. Within 6-8 hours of the blasts the railway system had resumed completely. Everybody resumed their work on the very next day. Schools, Colleges, Offices - everything remained open. Nobody panicked. There was no chaos. There were no riots. Life was as it was before the bombings. Only thing that is worth mentioning was that the telephone networks ( cellular and POTS ) were jammed due to excessive calls. Oh and yes, people were searching for the dead / injured ones. But that has nothing to do with technology right? :/

      Now compare this with what happened in London, Madrid, NYC. Being in a particular region doesnt make you 100% safe from such things. It can happen to anywhere, at any place without any warning.

    6. Re:Come on, guys.. by Anonymous Coward · · Score: 3, Insightful

      Nobody panicked. There was no chaos. There were no riots.

      Maybe you guys are used to it. But *I* wouldn't rely on a country in which it is normal to see bombs blow up once in a while to handle important data for my company. Seems logical, but I guess some will call that racism. Hence my posting as an AC. Sorry.

  2. Home sweet home by mrogers · · Score: 5, Funny

    Maybe it's time to consider moving those outsourced tech jobs back to a safe, terrorism-free city like London, Madrid or New York.

    1. Re:Home sweet home by Anonymovs+Coward · · Score: 5, Funny
      Hard to bomb a wheat field. :-)

      Only a cereal killer would do that.

    2. Re:Home sweet home by Zeinfeld · · Score: 5, Insightful
      Maybe it's time to consider moving those outsourced tech jobs back to a safe, terrorism-free city like London, Madrid or New York.

      Completely right there. This is just self interested posturing, not a genuine concern. Besides which we don't usually talk about the Israeli IT industry as 'outsourcing'.

      Many of the people who flame endlessly about outsourcing are the same people who flame endlessly about libertarianism and how great the free market is.

      What do slashdotters tell the people whose clerical jobs are being replaced by the systems they are developing? There is a bizare doublespeak here: Outsourcing bad, automation good. Historically IT people have been really good at protecting their own job security while making everyone else's job insecure.

      Given the state of the IT job market I have a hard time feeling sorry for folk being outsourced. There are plenty of IT jobs around - if you actually have the skills that are in demand. And that should not be a problem if you really are worth the prices IT people expect.

      The people who have difficulty getting a new position are the folk without formal qualifications and without a depth of knowledge in a useful field. Back in the dotcom boom I came across a consultant 'programmer' who did not know C, Fortran or Java. The only 'programming language' he knew was Delphi.

      --
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    3. Re:Home sweet home by zaphod_es · · Score: 4, Insightful

      Maybe New Orleans is a nice safe place. Of course the San Andreas fault is never going to crack so California is fine. But I like the weather in Florida so that could be a good choice.

      So a question: Where in the world is politically stable, economically stable, is free (so far) of catastrophic natural disasters and as a bonus has a decent climate?

  3. And the Difference is? by Raedwald · · Score: 4, Insightful

    How is outsourcing any different from sub contracting within your own country in this respect? Quoth the article:

    We didn't stop doing business in New York City or London after similar incidents

    Quite.

    --
    Ne mæg werig mod wyrde wiðstondan, ne se hreo hyge helpe gefremman.
    1. Re:And the Difference is? by tomstdenis · · Score: 3, Insightful

      Well there is two angles to the "anti-outsourcing jobs" thing.

      Lou Dobbs Side: Americans are the only ones who should have decent paying jobs, that's the way God wants it.

      Pragmatic Side: Most outsourced companies turn to shit because they hire just about anyone willing to work for low wages. Net result are shitty Engrish products that suck twice as hard as most natively built products.

      The trick is to note there are many professional and smart people in the "outsourced nations". The problem is companies don't always target them. Specially since most of them move to the West anyways. What you get are the morons at call centres who delete your accounts for fun or otherwise just be bothersome.

      Tom

      --
      Someday, I'll have a real sig.
    2. Re:And the Difference is? by El+Cubano · · Score: 4, Insightful

      FTA: Do you know the disaster recovery plans of your offshore services provider? Are their plans integrated with yours? And how prepared are these providers?

      In addition to your comment, not only did we not quit doing business in New York and London, but we didn't even change the way we do business. It is nearly five years after the Sept 11 attacks and most businesses still have no disaster recovery plan of their own. Does anyone seriously think that these same companies are concerned about whether their outsourced partners have such a plan? Sure, the companies that were in the WTC and lost huge amounts of people and equipment have probably laid out some plans. Some other people have probably been wise and seen the mistakes of others and laid their own plans. But largely, nobody has done anything to change they way of doing business. (Remember the proverb that says: "A smart man learns from his mistakes. A wise man learns from the mistakes of others.")

    3. Re:And the Difference is? by c_forq · · Score: 3, Interesting

      The last 3 companies I worked for, and 2 orginizations I am involved with all have disater recovery plans. Every large company I know of has somewhere in the building a really large 3 ring binder filled with plans on what to do in case of flood, fire, chemical spill, tornado, etc. The what to do not only covers immediate response but also steps to recovery. One company I worked for even had plans in case of a nuclear attack (but I think it was drafted during the cold war and no one saw a reason to eliminate it).

      --
      Computers allow humans to make mistakes at the fastest speeds known, with the possible exception of tequila and handguns
  4. Think about your choices by r4d1x · · Score: 4, Insightful

    Why do we always outsource to places that are stuck in eternal struggles. Seriously, when was the last time Iceland or New Zeland had some terrorist plot or civil war ensue.

    1. Re:Think about your choices by torpor · · Score: 4, Insightful

      Because life is cheap in those places, and therefore so is business.

      Corollary: Business puts a low value on human existence.

      --
      ; -- the corruption of government starts with its secrets. a truly free people keep no secrets. --
    2. Re:Think about your choices by RexRhino · · Score: 3, Insightful

      Corollary: Business puts a low value on human existence.

      Which is why we should be against buisness, and for giving more power to the state. Because if there is anything that Mao, Stalin, Chowchesku, Pol Pot, Hitler, Castro (and insert any other socialist dictator of your choice) have tought us, is that when you eliminate private buisness then you have a blossoming of human rights and value of human life it truly appreciated.

      Yeah, and never mind that Iceland and New Zealand are amoung the most unrestricted free-market economies in the world! And that free-markets are a relatively new and still limited in India and China, which were pretty much hardcore Socialist until the last few years. Yeah, it couldn't possibly be that the people are easily exploited in India and China because of the desperate poverty created by years of mismanaged central planning, forced labour, or rigid caste system - it is all those evil evil evil buisnessmen!

      If only we were valued as much as the people in buisness-free North Korea! We can only dream!

  5. Telecom, process, geographical diversification by CurtMonash · · Score: 3, Informative

    Three considerations, IMO, outweigh the rest:

    * Telecom infrastructure
    * Work process
    * Geographical diversification

    You need reliable telecom infrastructure for obvious reasons. You need good work processes for backup and the like, but even more so that if you lose the people on a project, somebody else can step in and at least understand what needs to be done. And you need geographical diversification so that, if worst comes to worst, there IS somebody else to step in.

    To the extent you have those three, outsourcing or otherwise doing business in unstable places can be a smart risk to take. If not, you can be very badly exposed.

    --
    To err is human. To forgive is good system design.
  6. Moral bankruptcy by dpbsmith · · Score: 3, Insightful

    Two hundred innocent people are killed and people are worried that future events like these might cause an IT outage?

    That's seems about on a par with worrying about doing business with Cantor Fitzgerald because they had an office located in the World Trade Center.

    And what, exactly, makes people think that India is going to be more subject to future terrorist attacks than... well, you fill in that sentence any way you please.

    1. Re:Moral bankruptcy by Kohath · · Score: 5, Interesting

      Two hundred innocent people are killed and people are worried that future events like these might cause an IT outage?

      Yes. Specifically, they are people who have the responsibility to prevent or otherwise deal with IT outages.

      The people who think the only moral thing to do in a crisis is to be emotionally overwrought are of no use to anyone when a crisis occurs. You can go sit in a closet and cry while the rest of us solve problems for the people who didn't get killed.

    2. Re:Moral bankruptcy by cvas · · Score: 3, Insightful

      Please. Exactly what were you expecting here? The lives lost are a tragedy, no one is saying otherwise, but if you think that people who have dealings in the area aren't questioning their future you are being naive.

      People who live and work there are wondering if they should anymore (if they even have a choice). People who do business there are wondering if they should take their business elsewhere. The people that run these companies are paid to keep the companies running, not shut down operations in protest or mobilize a vigilante strike force to kill the attackers. So yes, their primary concern is going to be the welfare of their company should they continue to have dealings in the area.

      And what if there is a future IT outage due to terrorist attacks? How would that affect the world? How would that affect the companies that are subject to that outage? Would they fold? Would their employees be out of work and as such no longer able to support their families? Is that not worth worrying about? Should the companies' only focus be on the people who are dead, the ones they can no longer do anything for, or should they concentrate on the future and the ones they can still help?

      As for what makes people think this could happen again here? Location, location, location.

  7. Bullshit by Clueless+Nick · · Score: 3, Insightful

    All major American, and certain European cities are under the threat of bombs, and not just normal bombs at that. You have the first world luxury of choosing from biological, chemical, nuclear and neurotic weapons. So why don't people speak about the threat to all technological and commercial sourcing?

    So why the fuck is the bombing in Mumbai so important to /.? Are you all softbellies scared of getting outsourced?

    Mark me flamebait, lazy overpaid supremacist!

    -clueless

    --
    Chat with other atheists http://secularchat.org
  8. Silly by dotdevin · · Score: 4, Insightful

    Come of folks. So the world's largest democratic country with the world's largest population of English speaking citizens has one city bombed and the US is going to rethink its direction to outsource technology workers there? Nope!

    In fact, many of the export centers are not in the city center and were unaffected by this event. Knowing many Indians, those that were will be back up and running in no time flat no matter what it takes.

    Now, there may be reasons to rethink outsourcing such as low productivity, higher costs, poor quality of work, and customer relation issues but this is not one of them.

    The best wishes of many people in the US go out to every Indian and we stand in solidarity with the many many millions of peace loving, free citizens of that nation.

  9. *sigh* by hey! · · Score: 3, Insightful

    My first reaction to this was "I wonder how this will affect IT outsourcing?"

    My second reaction was shame that that should be my first reaction, when I have friends and colleagues with family there.

    Personally, I don't think this should have a practical impact on outsourcing decisions. India is a stable democracy; war may stir ethnic and religious resentment, but I don't see things changing overnight in a way that affects business. And even at intolerable levels, terrorist attacks have almost no actuarial significance.

    On the other hand, China is frightening. It's not longer precisely accurate to call it a totalitarian state, but politically it is still a one party, non-democratic state. Mature democracies have a kind of dynamic stability, where individuals and parties change, but politics and policy don't shift that dramatically. Systems based on the authority of a single group may be superficially stable, but they are vulnerable to individuals or groups of individuals being replaced, or even just changing their minds. Put the nation under stress, and you could well have an ultra-ideological hard liner becoming supreme leader.

    --
    Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
  10. What crap! by Anonymous Coward · · Score: 4, Insightful

    Yea... I am from India and this is the worst kind of FUD I have seen. Terrorist attacks form a much smaller risk then fire, floods and other hazards. A city capable of dealing with those can pretty much handle any such terrorist emergencies. This article is pure FUD.

  11. Run for the Hills! by Waffle+Iron · · Score: 3, Interesting
    One in 5,000,000 Indians were killed last week in train bombings. That means that you should review your disaster recovery plans.

    But wait: One in 2,600,000 Americans die each and every day in automobile accidents! That can only mean we need to prepare for Armageddon!

  12. London, Madrid or New York by Simonetta · · Score: 3, Insightful

    Your attempt at irony is in extremely poor taste, even for a Slashdot nerd.

        The peoples of London, Madrid and New York were murdered at random by monsters who came to those places from distant lands where it is common to settle minor disputes by horrific acts of violence. The peoples of London, Madrid, and New York had learned from their history the futility of attempting to settle disputes through mass murder. They developed civilized methods of conflict resolution like fair court systems. They restrained themselves from mass murder in ways that are completely unknown to the subhumans who came to these cities from the disfunctional lands with the intention of genocidal slaughter.

        The resulting actions after suffering horrible murder by the citizens of London, Madrid, and New York against the peoples who come from disfunctional cultures are not racist or discriminatory, but reasonable and rational acts of self-defense from the people who come to their cities with the intent of murder. It is sad that the good, law-abiding, and civilized peoples who came to the great cities of civilization in order to escape from the madness of disfuctional societies suffer in the West due to the actions of monsters.

        But, it is the responsibility of the good, law-abiding, and civilized peoples from the disfuctional lands to seperate the monsters from their own society when they arrive in the civilized world. If the civilized people of a foreign culture can not or will not isolate and neutralize the monsters who live in their community, then they all will bear responsibility for the crimes that these monsters commit against the rest of the citizens. The entire community will suffer. That is the way that the world works.

      The citizens of the cities that have suffered from the crimes that subhumans commit are not responsible for their inability to tell monsters from civilized people among those have come to their cities from distant lands.

  13. What creates terrorists by rsilvergun · · Score: 3, Insightful

    is poor, desparate men and women with nothing to lose. Take someone, give them a job, a family and a future and see how eager they are to plant bombs on trains. That said, in 20 years when America's job market is flooded with 30 million+ (now legal) immigrants working for $5.15/hr, india and china's industrialization has drivin gas up to $10/gallon and a loaf of bread is $5-$10 dollars, expect to see random bombings and shootings here too.

    --
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  14. The High Costs of Muslim Populations by Anonymous Coward · · Score: 3, Insightful

    Just another example of the high costs- physical, economic, psychic- of having a large Muslim population in your midst. Israel suffers from it for dispossesing the Palestinian people- mainly the Muslim flotsam and jetsam of imperial Turkey, resettled in Judea from Egypt, Circassia, and the Balkans during the Ottoman Empire's slow-motion collapse. Yet what of India, the victim of 1400 years of continual jihad aggression during which millions of Hindus were slaughtered or enslaved, tens of thousands of temples and monuments destroyed, and in the modern age two large sections of it carved out to make homelands for its invaders? Yet what did it do to deserve this enemy from without (Pakistan and to a lesser extent Bangladesh) and within (150 million Indian Muslim "citizens") besides succumbing in the end to continuous jihad aggression? And why are Western countries voluntarily replicating the same conditions for themselves by allowing millions of Third World Muslim colonist-invaders into their midsts?

  15. What I think... by whoisvaibhav · · Score: 4, Insightful

    Putting aside emotional reactions which would cause me to make comments like: "people are dying and yet you are thinking about IT infrastructures"... (I am an Indian, and have lots of relatives and friends in Mumbai). I know that life went on after the blasts. I know that the big IT companies in India are world leaders when it comes to having processes and procedures concerning their business. (I am in the IT industry myself). In my experience, most of the clients that I have worked with have had little or no processes themselves. So, it is unfair to think of this in a light where India (the country being out-sourced to) needs to have back-up plans, and disaster recovery procedures. Anyway, I think that the whole world is fair game for terrorist activities (terrorists being what they are), so we should be discussing about these procedures, plans, etc. at a global level. - Vaibhav