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IBM insiders are still expecting those big layoffs we predicted were on the way before Christmas (CSN No 481). They were supposed to be announced on Monday theoretically after the market closed – and IBM had reportedly embargoed any press releases from going out on Tuesday – but all that popped out was the news it was outsourcing more manufacturing to Sanmina-SCI, an interesting little piece but hardly worthy of a news blackout. So since IBM is scheduled to post its quarter on January 16, the thinking now goes that it has moved the layoffs announcement closer to Thursday to cushion what may be not-as-good news as the Street expects. And since IBM Global Services is supposed to take the brunt of the hit, there’s some talk it’s to compensate for its PricewaterhouseCoopers acquisition. Linuxgram is published weekly by G2 Computer Intelligence Inc. 323 Gle... (more)

Tech Industry Use of Foreign, Temp, and Overseas Labor Causing Unemployment? High-Tech Debate Fills the Forums as IEEE-USA C

(July 30, 2002) - Sparking a firestorm of online debate in the tech field, the IEEE-USA, an organizational unit of The Institute of Electrical and Electronics Engineers, has asked Congress to investigate the impact of increased hiring of non-U.S. guest workers, the greater use of temporary workers and the outsourcing of engineering work overseas as causes of the unemployment problem, in addition to the economic downturn. "IEEE-USA is concerned that the most recent increase in engineering unemployment is not a short term or cyclical phenomenon, but represents a more fundamental shift in engineering utilization that has potentially negative impacts for our nation," IEEE-USA President LeEarl Bryant said in a letter to Congress earlier this month. ( "The corporate management mantra "better, faster, cheaper" is predicated on '... (more)

1 in 4 IT Jobs Going Offshore, Says Gartner; One Major "Offshoring Failure" in 2004 Predicted

Read "Offshoring Offers Opportunities for U.S. IT Troubleshooters" Read "Offshore Outsourcing: Magic Bullet or Dirty Word?" Roger Cox, managing VP at Gartner, has been telling that a quarter of traditional IT jobs in Western countries will move to offshore locations such as India by 2010. The global trend toward "offshoring," in other words, continues to boom in Europe - as elsewhere. According to the latest figures from Gartner, outsourcing as a whole is outstripping the IT services market in Europe, growing by 3.1% in 2004 and predicted to rise to 8% by 2007 - "with the offshore element tipped to grow hugely," adds Cox. Gartner predicts almost a third of leading European businesses will include an offshore element in their IT plans by 2005. According to, Cox said "The alarming nature of that headline '1 in 4' figure masks the true story." ... (more)

IT Trends: "Intelligent Computing" is Greater Threat than Outsourcing

According to the president of a global research and consulting firm, about ten million manufacturing jobs involving physical labor and repetitive activities worldwide were lost due to machines replacing humans. In other words, the greatest threat to jobs is not IT outsourcing to India, it is rather that increasingly "smart" systems will lead to the replacement of more and more knowledge workers by smart applications. Harvey Cohen, president of Strategy Analytics, believes that higher value-added jobs - involving identification, assessment, conclusions, decisions, and recommendations - will continue to be lost to systems with increasingly intelligent capabilities, creating what he describes as as "a $100 billion opportunity." "In the next wave," of this trend, Cohen continues, "there will be an employment threat involving the substitution of emerging systems with emb... (more)

Outsourcing "Has Been Going On Forever" - Intel's CEO

Related Links: Saturday Essay: Why Outsourcing is a "Tremendous Opportunity" for US Economy Intel Goes From Hard Core to Dual Core "We've Had Some Fumbles," Says Intel's Otellini Offshore Outsourcing: Magic Bullet or Dirty Word? 1 in 4 IT Jobs Going Offshore, Says Gartner; One Major "Offshoring Failure" in 2004 Predicted IT Trends: "Intelligent Computing" is Greater Threat than Outsourcing "'The world is always ready to receive talent with open arms.' That's really what outsourcing is," said Intel's CEO Craig Barrett recently in an interview with the San Francisco Chronicle. He was quoting a fortune cookie slogan which he feels sums up the whole issue very neatly. Globalization has played its part. "The world's economy in the last 10 years has opened up," said Barrett, "and you've had a seminal event, of half the world's population joining the world's free economic sy... (more)

Avoid Being Outsourced

Products and markets have well-defined life cycles that vary in amplitude and length, but follow historical patterns. As Bob Hendry described in his editorial in last month's issue ("Is IT Outsourcing Worth It?" [Vol. 10, issue 10]), the IT outsourcing craze is in full swing. Certainly the heads-down programmer jobs are rapidly flowing out of this country, but for two centuries the backbone of American success and industrial might has not been labor but rather innovation. During the industrial revolution we made great innovations in industrial technology and went from a small colony to a world industrial power. Continuing innovations as well as the enormous labor migrations of the 1800s carried the U.S. and its allies to victories in the World Wars, where victory was closely correlated to the volume of weapons manufactured and weapon innovations. Decades of American... (more)

India's i-Technology Triangle: Will India Fail?

To say that many engineers in Silicon Valley are angry about outsourcing to India--and to "insourcing" engineers from India under the H1B non-immigrant visa--is to say that it gets warm in India. Yes, many people are very, very angry, and yes, it gets very, very warm in India. Beyond these cliches, though, it was interesting for this reporter to find a certain defensiveness among many members of the IT community with whom I spoke during my recent trip there. "So you guys are here to blame us Indians on taking all of your American jobs, right?" Thus we were greeted by a software engineer in the city of Hyderabad. It was also interesting to hear the opinions of some of my colleagues whose jobs are not threatened by India but who nevertheless have harsh opinions as to the wisdom of any company working with companies there. "Whatever you save in labor costs, you'll more tha... (more)

What CIOs Should Know About Outsourcing Enterprise Java

Your manager Frank started the meeting by saying that the budget for the new project had been approved, but half of the project will be outsourced to a great team from overseas. Can you imagine, their rates for Java programmers can go as low as $15 an hour! No, we're not losing anyone from our team, and you should take it as an opportunity to work as team leaders, helping our new partners to hit the ground running. No, this wasn't my decision; it came from above. Three Months Later Mary. I've asked them to add two fields to a JTable on the Invoice screen. The data are being retrieved from our database so they'd need to modify an SQL query as well. I've sent them this e-mail yesterday, but it was night time over there, so they've responded today asking me to send them the modified SQL and write the name of the Java class and method where this new code should reside. ... (more)

Sogeti Group Contributes to AJAX Technology

Sogeti, a european leader in IT services and R&D outsourcing and wholly-owned subsidiary of the international Capgemini Group, and ObjectWeb, a nonprofit consortium of companies and research organizations from around the world who have joined forces to produce next-generation open source middleware, today announced the availability of pre-release 1.0 of Telosys – an open source AJAX framework for Java EE specifically designed to facilitate migration of client/server applications and rapid development of new applications. ObjectWeb Telosys is a self-sufficient solution that covers both the presentation and the persistence layers as required in rich client web applications. Its modular architecture hides most of the complexity of AJAX, making acquisition of skills easier for non specialized development teams. The first uses have shown productivity gains of 15 t... (more)

Exigen Services and StarSoft Merge to Create Next Generation Application Outsourcing Provider in Central and Eastern Europe

SAN FRANCISCO and BOSTON, Feb. 12 /PRNewswire/ -- Exigen Services, one of the largest application outsourcing firms in Central and Eastern Europe, and StarSoft Development Labs, a leading provider of software development outsourcing services in Russia and Ukraine, today announced their merger. The combination of Exigen Services' EU operating base, expertise in technology- driven application outsourcing and solution delivery services for large enterprises, and StarSoft's access to Russian talent pool as well as world- class expertise in Agile software development, forms a next generation outsourcing partner with a comprehensive portfolio of offerings for Global 2000 clients across Europe and North America. "Merging with StarSoft, the innovative outsourcing provider recently recognized by neoIT on the "Global Services 100" list, enhances Exigen's delivery capabilitie... (more)

Connecting SaaS Providers with Their Customers

Software is now increasingly provided as a service; in other words, it is now offered as a hosted application that users access through Web browsers. Many companies see this as an effective way of outsourcing some of their IT requirements. However, they face an increasing number of integration issues as part of this strategy. Many are turning to ESBs for a solution. As the use of Software as a Service (SaaS) increases, there is a growing realization that companies making use of SaaS applications need to integrate them within their overall IT infrastructure. This means that data needs to flow between the SaaS applications and their other IT systems. SaaS providers typically provide programmatic interfaces to facilitate this. From the SaaS providers' perspective, there is a danger that the overhead of achieving such integrations could take away from the core values of t... (more)