I have just returned from a fact-finding mission about moving our IT operations offshore. Everyone looks to India or Indonesia as their prime offshore destination due to their low labour costs, good skills and similar spelling. There's no competitive advantage to our company just following the crowd, so I looked to parts of the world that few others have seriously considered, such as China, Africa and Europe.
Everybody's already shifted manufacturing to China and the move of services is following, but China's management of its massive expansion could present a future business risk. Africa may well become the next China, but currently it's the next Middle East with regimes popping up and down like a badly configured intranet. I think the next China will still be China.
To assist other CIOs in planning their fact-finding itineraries, I can advise that the regions I chose to visit — Tuscany, Provence and the Maldives — are not viable offshore alternatives. (Maldives is admittedly offshore, but the powers that be there didn't seem to be promoting that feature as an outsource business option.) I conducted an exhaustive search throughout each region — so exhaustive that I had to have a holiday afterwards, and fortunately there were resorts conveniently located in each destination.
Prior to my trip, I thought that sending some IT functions overseas would be good for both the company and the country. The current account deficit is very high, so I'd be helping restore the balance of payments by exporting some of our skills and talents overseas. The CFO saw it differently, and tried to explain it to me over lunch one day, but I had trouble following his figures, especially after the second glass of red.
I've never been good with numbers. I once worked in a company that shed a third of its workforce during a downturn, issuing a statement that this was a positive move that would save the company $30 million. At the information and propaganda meeting for all employees, I asked why they didn't just get rid of everyone and save $100 million. They then shed one third plus one. That company now has a large number of workers in India, soon to outnumber their US employees.
On the way home on the plane, I had time to think about my mission, since I'd already seen all the movies — twice. I considered the impact on my loyal employees and, more importantly, on my department. If staff numbers decrease, I'd lose power and prestige. While I could argue that I'd be managing an international business with increased staff numbers (since our offshore operation could afford to hire more people), I doubt the CEO would buy it. Nor would my staff. Nor do I. If most of my IT operations does move, then the management previously required for those operations diminishes or also moves offshore. A job reduced is a job in peril — my CIO position could be replaced by the part-time contract positions of a policies officer and an outsourcing manager. I'm willing to resign myself to IT being in India, but I'm not willing to resign myself to be in India. There and then, I made two important decisions. I will fight any attempt to send my IT operations offshore. Secondly I won't use the term offshoring, as I don't like to verbize nouns (but I'm happy to nounize verbs).
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CIO Live Podcast #79: Brent D Taylor, author of The Outsider's Edge: The Making of Self-Made Billionaires Part II 05 October, 2007 06:00:00
For his new book, The Outsider's Edge: The Making of Self-Made Billionaires, social researcher Brent D Taylor spent four years of intensive research investigating the psychological make-up and backgrounds of some of the world's richest men and women, including IT luminaries Bill Gates, Larry Ellison and Steve Jobs. Taylor discovered that, despite working in different industries and coming from different upbringings, they all have one thing in common -- they are all outsiders. - +
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CIO Live Podcast #76: Panasonic Speeds Up Trans-Pacific File Transfers, Part II 14 September, 2007 07:00:00
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CIO Live Podcast #75: Panasonic Speeds Up Trans-Pacific File Transfers, Part I 07 September, 2007 07:00:05
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Rogue SSL certificate exploit puts VeriSign on the spot 07 January, 2009 11:04:00
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With Gaza conflict, cyberattacks come too 05 January, 2009 08:03:00
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5 ways to secure your Blackberry 18 December, 2008 12:58:00
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Wireless VPNs: Protecting the wireless wanderer 18 December, 2008 11:04:00
Employees sipping café Java over their wireless laptops may think a VPN makes them safe and secure. With careful configuration, there's some chance they're rightEmployees sipping café Java over their wireless laptops may think a VPN makes them safe and secure. With careful configuration, there's some chance they're right. - +
Cyber Crime: The 2009 Mega Threat 17 December, 2008 12:09:00
What threats to a company's sensitive and confidential data are getting worse, staying the same or actually becoming more manageable?What threats to a company's sensitive and confidential data are getting worse, staying the same or actually becoming more manageable?
Anyware Introduce Two Powerful PCI TV Tuner Cards with S5 Power Up and Windows Media Center Remote 07 January, 2009 17:30:00
Fortinet Cures Mobile Phone “Curse of Silence/CurseSMS” Attack 07 January, 2009 16:30:00
SEAGATE SHIPS DESKTOP HARD DRIVE WITH WORLD’S HIGHEST AREAL DENSITY – 500GB PER DISK 06 January, 2009 15:34:00
New FileMaker Pro 10 Ships With Sleek New Interface and Breakthrough Reporting and Automating Features 06 January, 2009 12:21:00
Lexar extends KODAK offering with Secure Digital High-Capacity, High-Speed Memory Card 06 January, 2009 09:36:00
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Refresh your AUP: Top tips to ensure your acceptable use policy is fit for purpose
Your organisation may well have devised and implemented an Acceptable Use Policy (AUP) some time ago in order to guard against the risks of inappropriate use of computer systems by your workers, but are you confident that your AUP remains 'fit for purpose'? Read on to discover how you can enhance the effectiveness of your AUP.










