Welcome!

IBM Cloud Authors: Liz McMillan, Harry Trott, Pat Romanski, Elizabeth White, Yeshim Deniz

Related Topics: IBM Cloud

IBM Cloud: Article

How to Deal with IT Outsourcing? Fulfill Society's Unmet Needs

How to Deal with IT Outsourcing? Fulfill Society's Unmet Needs

The whole point of my recent series of editorials has been to get people thinking about what has happened to the job market for IT developers and administrators - and where it is going next. Over the past two months I have written about what I have witnessed at countless dot coms and development companies around the country and where I see the IT work market going.

I've made some people angry. Some of them have even called me names or said I am out of touch, but others have agreed with me. I know that some of my examples went to the extreme, but that was the whole point; the current situation with offshore outsourcing has gone to the extreme. The entire market is now swinging to a new extreme of sending work outside of the country. This is not a good thing.

The reality of human behavior is that people tend to move in very distinct patterns, with large, seemly disassociated groups thinking that what they are doing and thinking is unique - when in reality their behaviors and thoughts are commonly held beliefs and attitudes that are part of mass movements.

Currently we have a classic labor-versus-management conflict bubbling up with a very special twist. Business in its most simple terms is a three-legged stool composed of labor, capital, and management. No business can exist without the three components.

Labor, when applied with no thought or direction, is of little or no value. All one ends up with is, at best, subsistence living and basic survival.

Capital is a very tricky concept for most people because they mistakenly think that capital has power. Nothing could be further from the truth. Capital has no kinetic energy; it possesses only potential energy. It can be transformed to kinetic energy only by the application of labor.

Management applied intelligently to labor and capital - with a unifying direction toward a specific goal - is what drives profits (or losses, depending on how well the labor and management have fulfilled society's unmet needs with their collective outputs). The winners are showered with profits and an increased standard of living, and the losers experience the reverse effect.

When the United States started shedding factory jobs in the 1960s no one seemed to care, except of course the factory workers who where thrown out of work permanently. This time I am not using an extreme example. Think about it for a moment: Do you drive a car or watch a television made in the United States? You probably don't own an American-made car, as I don't know even one code writer or system administrator who does. As far as televisions go, there hasn't been a mass-produced television made in the United States in over 30 years. Do you eat the All-American hamburger? Did you know that the United States has become the world's largest importer of beef?

It's getting pretty hard to find anyone in this country who drives a Chevy and watches an old black-and-white television while eating some Kansas-raised beef.

The reason nobody ever cared is that these seemly low-paying jobs were being replaced by much higher-paying replacement jobs. They told us it was good for the economy and that knowledge-based jobs in the service sector were the road to independence and a standard of living that could only go up.

Guess what? They were wrong. Nobody ever anticipated third-world countries coming into the U.S. economy and taking high-paying jobs from college-educated Americans. This phenomenon is the single largest unintentional consequence of the rise of the Internet. It seems that the new replacement jobs are only lower-paying, downward-mobility jobs.

A national debate is brewing, but don't look to your favorite politicians for the answer. You know more about what's going on than they do.

Information technology is here to stay and will continue to embed itself into our society. The only answer is innovation and the development of new products through the use of technology to fulfill unmet human needs.

More Stories By Jacques Martin

Jack Martin, editor-in-chief of WebSphere Journal, is cofounder and CEO of Simplex Knowledge Company (publisher of Sarbanes-Oxley Compliance Journal http://www.s-ox.com), an Internet software boutique specializing in WebSphere development. Simplex developed the first remote video transmission system designed specifically for childcare centers, which received worldwide media attention, and the world's first diagnostic quality ultrasound broadcast system. Jack is co-author of Understanding WebSphere, from Prentice Hall.

Comments (2) View Comments

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


Most Recent Comments
Todd Canipe 01/28/04 01:19:29 AM EST

I'm an american Vetran of twenty-years of military service to my country. I went to school while serving my country to get an education knowing that I would need it to fall back on once I retired. My family has put up with the burden of all these things all the while not complaining or showing any disgruntlement. So, please forgive me if I say that although I understand why IT Services Companies want to move to off-shore resourcing as it is only a portion of global economization and labor is cheaper. So, go ahead.. And while you're at it, please move the Company out of the US, so that the little-guys you leave behind and out of work, can become your competitors for business.. Don't think it could happen? Think again... Farina... Americans can still innovate and produce quality deliverables and services -- on-time -- below budget -- better than anybody else.. I know, because that's what I do everyday.. So bite me!

Yogesh Kant Roy 01/24/04 01:38:51 PM EST

It is not offshore outsourcing that has gone to the extreme, but its the reaction and job insecurity that has gone to the extreme. We need to temper this, US will loose credibility of being a global ecomony, and can no longer ask other countries to open up their markets. The phenomenal growth of US over the last 50 years could not have been achieved without free markets of the capitalistic society, and future growth cannot be achieved without continuing on the path of free trade.

After all the hype surrounding offshore call center outsourcing during 2003, and concerns of jobs moving overseas, a new Datamonitor report predicts that only 5% of agent positions worldwide will be located offshore by 2007. While there is clearly a threat to domestic jobs, the extent of the threat may not be as big as the media is making it out to be.

According to Datamonitor, 241,100 agent positions will be located offshore in 2007. That number represents 5% of the total global call center market, which will have grown to 4.78 million agent positions by 2007.

@ThingsExpo Stories
SYS-CON Events announced today that Golden Gate University will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Since 1901, non-profit Golden Gate University (GGU) has been helping adults achieve their professional goals by providing high quality, practice-based undergraduate and graduate educational programs in law, taxation, business and related professions. Many of its courses are taug...
"We provide IoT solutions. We provide the most compatible solutions for many applications. Our solutions are industry agnostic and also protocol agnostic," explained Richard Han, Head of Sales and Marketing and Engineering at Systena America, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
Recently, WebRTC has a lot of eyes from market. The use cases of WebRTC are expanding - video chat, online education, online health care etc. Not only for human-to-human communication, but also IoT use cases such as machine to human use cases can be seen recently. One of the typical use-case is remote camera monitoring. With WebRTC, people can have interoperability and flexibility for deploying monitoring service. However, the benefit of WebRTC for IoT is not only its convenience and interopera...
SYS-CON Events announced today that Secure Channels, a cybersecurity firm, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Secure Channels, Inc. offers several products and solutions to its many clients, helping them protect critical data from being compromised and access to computer networks from the unauthorized. The company develops comprehensive data encryption security strategie...
From 2013, NTT Communications has been providing cPaaS service, SkyWay. Its customer’s expectations for leveraging WebRTC technology are not only typical real-time communication use cases such as Web conference, remote education, but also IoT use cases such as remote camera monitoring, smart-glass, and robotic. Because of this, NTT Communications has numerous IoT business use-cases that its customers are developing on top of PaaS. WebRTC will lead IoT businesses to be more innovative and address...
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
SYS-CON Events announced today that App2Cloud will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. App2Cloud is an online Platform, specializing in migrating legacy applications to any Cloud Providers (AWS, Azure, Google Cloud).
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, shared examples from a wide range of industries – including en...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. Jack Norris reviews best practices to show how companies develop, deploy, and dynamically update these applications and how this data-first...
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Consumers increasingly expect their electronic "things" to be connected to smart phones, tablets and the Internet. When that thing happens to be a medical device, the risks and benefits of connectivity must be carefully weighed. Once the decision is made that connecting the device is beneficial, medical device manufacturers must design their products to maintain patient safety and prevent compromised personal health information in the face of cybersecurity threats. In his session at @ThingsExpo...
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
SYS-CON Events announced today that Massive Networks will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution and join Akvelon expert and IoT industry leader, Sergey Grebnov, in his session at @ThingsExpo, for an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
Because IoT devices are deployed in mission-critical environments more than ever before, it’s increasingly imperative they be truly smart. IoT sensors simply stockpiling data isn’t useful. IoT must be artificially and naturally intelligent in order to provide more value In his session at @ThingsExpo, John Crupi, Vice President and Engineering System Architect at Greenwave Systems, will discuss how IoT artificial intelligence (AI) can be carried out via edge analytics and machine learning techn...