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The US Is Becoming a Hot Spot For Outsourcing (bendbulletin.com)

New submitter cdreimer shares a report from The New York Times (Warning: may be paywalled; alternate source) about how companies are now outsourcing in the United States, hiring from Michigan instead of Mumbai. From the report: For years, American companies have been saving money by "offshoring" jobs -- hiring people in India and other distant cubicle farms. Today, some of those jobs are being outsourced again -- in the United States. Nexient, a software outsourcing company, reflects the evolving geography of technology work. It holds daily video meetings with one of its clients, Bill.com, where team members stand up and say into the camera what they accomplished yesterday for Bill.com, and what they plan to do tomorrow. The difference is, they are phoning in from Michigan, not Mumbai. "It's the first time we've been happy outsourcing," said Rene Lacerte, the chief executive of Bill.com, a bill payment-and-collection service based in Palo Alto, Calif. Nexient is a domestic outsourcer, a flourishing niche in the tech world as some American companies pull back from the idea of hiring programmers a world away. Salaries have risen in places like South Asia, making outsourcing there less of a bargain. In addition, as brands pour energy and money into their websites and mobile apps, more of them are deciding that there is value in having developers in the same time zone, or at least on the same continent.

4 of 172 comments (clear)

  1. I worked for an "on shoring" company by garcia · · Score: 4, Interesting

    In 2012, I was hired at a company which did on-shoring, mainly COBOL and RPG programming for healthcare and insurance companies still running on AS400. They were trying to expand into a new vertical, SAS programming for analytics firms, which I was hired to lead.

    After being acquired by a large multinational which was mainly doing offshoring, it took less than 2.5 years to kill the onshoring and continue on their merry way with the traditional offshore work.

    Yes, onshoring is a great idea and needs to be sold more often, it's just going to be difficult with the offshoring companies buying them up and shutting them down.

  2. Re:Outsourcing is just a way by dywolf · · Score: 4, Interesting

    you have that exactly backwards.
    they don't work harder for less money.

    GDP is an indicator of productivity, not economic well being or standard of living.
    their GDP per capita is lower, but their purchasing power is higher, which offsets that.
    their standard of living at a given wage level is the same or higher than the US.
    they have better pay, benefits, time off, and health, etc.

    rather, to achieve the german level of living, we have to earn more in the US precisely because we don't enjoy those same benefits.

    --
    The guy who said the election was rigged won the presidency with the second-most votes.
  3. Re: ARRRRGGGG! by Entrope · · Score: 4, Interesting

    Ah, the classic No True Scrum argument. If Scrum is not working for you, it's because you are not doing Scrum right! And you even combine it with the Right Scrum Team argument. If your team needs management, Scrum isn't for you. Your team must be coherent, driven, and self-directed for Scrum to work. (Never mind that every other process in the world will also work with such a team.)

  4. Re:So...mr. Trump... by AmiMoJo · · Score: 4, Interesting

    Hard to say on this one. The tide was already turning against off-shoring due to low quality and other problems. Maybe Trump accelerated it, maybe it's just being reported differently because it's something he promised to do.

    --
    const int one = 65536; (Silvermoon, Texture.cs)
    SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC