Welcome!

IBM Cloud Authors: Elizabeth White, William Schmarzo, Don MacVittie, Pat Romanski, Liz McMillan

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
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo 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 ...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
It is of utmost importance for the future success of WebRTC to ensure that interoperability is operational between web browsers and any WebRTC-compliant client. To be guaranteed as operational and effective, interoperability must be tested extensively by establishing WebRTC data and media connections between different web browsers running on different devices and operating systems. In his session at WebRTC Summit at @ThingsExpo, Dr. Alex Gouaillard, CEO and Founder of CoSMo Software, presented ...
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, introduced two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a multip...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
SYS-CON Events announced today that Evatronix 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. Evatronix SA offers comprehensive solutions in the design and implementation of electronic systems, in CAD / CAM deployment, and also is a designer and manufacturer of advanced 3D scanners for professional applications.
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
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. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...