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  1. Related Wired article to last post

    jake on 2004.02.12
    at 12:40 pm

    I get Wired Magazine every month, and they actually did a cover story on this topic in the February issue. The article makes some good points about how while IT outsourcing isn't necessarily a good thing, we are definitely whining about it a lot.

    Isn't the emergence of a vibrant middle class in an otherwise poor country a spectacular achievement, the very confirmation of the wonders of globalization - not to mention a new market for American goods and services? And if this transition pinches a little, aren't Americans being a tad hypocritical by whining about it? After all, where is it written that IT jobs somehow belong to Americans - and that any non-American who does such work is stealing the job from its rightful owner?

    And this other point keeps me in the grey area of the whole situation. I'd probably be sitting on the fence less if I was out of a job because of outsourcing but I do believe it can have its place.

    Today, even innovative firms spend too much money maintaining products: fixing bugs and rolling out nearly identical 2.0 versions. Less than 30 percent of R&D spending at mature software firms goes to true innovation, according to the consulting firm Tech Strategy Partners. Send the maintenance to India and, even after costs, 20 percent of the budget is freed up to come up with the next breakthrough app. The result: more workers focused on real innovation. What comes after services? Creativity.

    Posted in: Technology

     

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