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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Process Trip 04 February, 2008 13:07:03
Why Maritz Travel revamped key business processes — and how business and IT came together to make it workWhen Rich Phillips became COO OF Maritz Travel about two and-a-half years ago, he sat down and took a hard look at the big industry picture - +
Ticked Off at Tick the Box Mentality 04 February, 2008 13:01:15
Does your executive search firm know the difference between an MIS manager and a CIO, and if it does, can it explain that difference to its corporate clients?Does your executive search firm know its MIS managers from its elbow? Does it even know the difference between an MIS manager and a CIO, and if it does, can it explain that difference to its corporate clients? - +
How to Get Real About Strategic Planning 04 February, 2008 12:50:59
Everyone agrees that having a strategic plan for IT is a good thing but most CIOs approach the process with fear and loathing. In fact, the majority of CIOs (and the enterprises they work for) are faking it when it comes to strategic planning. Isn't it time we all got real?Oh, it must be nice to be the CIO of a FedEx or a GE or a Credit Suisse. Places where IT and the business are so tightly aligned you can barely tell the two apart. Where corporate leaders understand that IT is a strategic asset and support it as such - +
Toxic Mix or Bit of a Mixed Blessing? 31 December, 2007 10:36:30
“Eye of newt, and toe of frog, Wool of bat, and tongue of dog . . . ” The inter-generational office brew of Boomer, Gen X and Gen Y may not be quite as odious as that of the three witches in Shakespeare’s Macbeth, but even so it makes “for a charm of powerful trouble”"Eye of newt, and toe of frog, Wool of bat, and tongue of dog . . . " The inter-generational office brew of Boomer, Gen X and Gen Y may not be quite as odious as that of the three witches in Shakespeare's Macbeth, but even so it makes "for a charm of powerful trouble" - +
Strategies for Dealing With IT Complexity 24 December, 2007 10:30:47
Every innovation, every business process improvement, comes with an IT complexity tax that must be paid by CIOs in time, money and sweat. Here are strategies to mitigate the increasing complexity of IT as it enables new business.Every innovation, every business process improvement, comes with an IT complexity tax that must be paid by CIOs in time, money and sweat. Here are strategies to mitigate the increasing complexity of IT as it enables new business.
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Bill Gates: A New Approach to Capitalism in the 21st Century 28 January, 2008 07:12:19
Transcript of Gates speech, and a Q&A at World Economic Forum in Davos, SwitzerlandAs you all may know, in July I'll make a big career change. I'm not worried; I believe I'm still marketable. I'm a self-starter, I'm proficient in Microsoft Office. I guess that's it. Also I'm learning how to give money away.
Vendor Management 101: An Executive Guide to Vendor Management
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Service-Level Agreements 101: An Executive Guide to Service-Level Agreements (SLAs)
IT Recruiting 101: An Executive Guide to IT Recruiting
Outsourcing/Offshoring: An IT Security Expert's View
Read up on the latest ideas and technologies from companies that sell hardware, software and services. Best Practice in Building an Integrated Information Management Strategy
Delivering the Power of Choice with Microsoft Dynamics CRM
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Discover the advantages of an open architecture multi-vendor network solution
Data grids and service-oriented architecture
- White PaperView this webcast and discover the drivers for changing network design practices, why many organisations are changing their approach to network architecture and how enterprises should be moving forward with open architecture multi-vendor network solutions. Register now and learn how your business can maximize the business value of the enterprise network.
- White PaperJoin Lee Benjamin, a Microsoft Exchange MVP and Ryan Shipkowski, network administrator for Matthews, to discuss the process and ROI of implementing an email archiving solution, with emphasis on a case study from Matthews International.
- White PaperYour 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.
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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. - +
CIO Live Podcast #78: Brent D Taylor, author of The Outsider's Edge: The Making of Self-Made Billionaires 28 September, 2007 17:34:25
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. - +
CIO Live Podcast #77: Panasonic Speeds Up Trans-Pacific File Transfers, Part III 21 September, 2007 07:00:00
Part three in our three-part special report from CIO's sister publication Network World in the US, as Paul Desmond reports from the Network World IT Roadmap Conference in Santa Clara, California. With development teams in the US and Japan, Panasonic needed a more efficient way to move very large files between the two locations. Iben Rodriguez, IT consultant for Panasonic Research and Development, explains how a storage-area network and virtual server technology helped speed up WAN performance. - +
CIO Live Podcast #76: Panasonic Speeds Up Trans-Pacific File Transfers, Part II 14 September, 2007 07:00:00
Part two in our three-part special report from CIO's sister publication Network World in the US, as Paul Desmond reports from the Network World IT Roadmap Conference in Santa Clara, California. With development teams in the US and Japan, Panasonic needed a more efficient way to move very large files between the two locations. Iben Rodriguez, IT consultant for Panasonic Research and Development, explains how a storage-area network and virtual server technology helped speed up WAN performance. - +
CIO Live Podcast #75: Panasonic Speeds Up Trans-Pacific File Transfers, Part I 07 September, 2007 07:00:05
Part one in our three-part special report from CIO's sister publication Network World in the US, as Paul Desmond reports from the Network World IT Roadmap Conference in Santa Clara, California. With development teams in the US and Japan, Panasonic needed a more efficient way to move very large files between the two locations. Iben Rodriguez, IT consultant for Panasonic Research and Development, explains how a storage-area network and virtual server technology helped speed up WAN performance.
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Chris Hoff on Virtualization and Cloud Computing 20 November, 2008 10:55:00
Chris Hoff, chief security architect for the systems and technology division at Unisys and an advisor on the Skybox Security customer advisory board, is one of the biggest critics of virtualization security out there. Not because it isn't important - but rather because it is vital and needs to mature rapidly. - +
Cybersecurity is focus of new start-up incubator 20 November, 2008 07:19:00
Texas uni announces the Institute for Cyber Security.The University of Texas at San Antonio Tuesday announced a technology incubator aimed at fostering IT security-based start-ups within the state. - +
Dilip Sarangan on Physical Security M&A 20 November, 2008 11:18:00
Dilip Sarangan tracks physical security companies for Frost & Sullivan. He expects the industry's "need to have" products to weather the economic storm well, with the big players (now including IBM and Cisco) looking for value-priced acquisitions. - +
International Challenges in PCI Security 20 November, 2008 09:15:00
In a country that's seen many regulatory compliance challenges this decade, the headaches of PCI security tend to be analyzed from a largely American perspective. - +
PCI council sharpens oversight of security auditors 19 November, 2008 10:53:00
Quality assurance plan targets security assessors and scanning vendorsThe PCI Security Standards Council Monday unveiled a plan to sharpen oversight of the hundreds of security-service providers now authorized to evaluate merchant networks under the organization's Payment Card Industry data standards.
Vignette Announces 2008 Excellence Awards 21 November, 2008 10:50:00
PGP and Ponemon Institute Unveil Inaugural Australian Data Breach Study 2008 20 November, 2008 17:34:00
Symantec Cloud Services Transform Data Centre Operations Through Proactive Management 20 November, 2008 12:06:00
Verizon Business Offers Tips to Building a Successful Unified Communications and Collaboration Plan 20 November, 2008 12:04:00
AARNet Brings 4K Digital Cinema to Australia: First 4K HD Video Signal delivered into Australia by AARNet 20 November, 2008 12:02:00
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Discover the advantages of an open architecture multi-vendor network solution
View this webcast and discover the drivers for changing network design practices, why many organisations are changing their approach to network architecture and how enterprises should be moving forward with open architecture multi-vendor network solutions. Register now and learn how your business can maximize the business value of the enterprise network.














