Click here to close now.




















Welcome!

IBM Cloud Authors: Lori MacVittie, Elizabeth White, Carmen Gonzalez, XebiaLabs Blog, 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
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with APIs within the next year.
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect their organization.
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world and it starts with business models and monetization strategies.
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share what businesses must do to thrive in the IoE economy, citing examples from several industry sectors.
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
Akana has released Envision, an enhanced API analytics platform that helps enterprises mine critical insights across their digital eco-systems, understand their customers and partners and offer value-added personalized services. “In today’s digital economy, data-driven insights are proving to be a key differentiator for businesses. Understanding the data that is being tunneled through their APIs and how it can be used to optimize their business and operations is of paramount importance,” said Alistair Farquharson, CTO of Akana.
Business as usual for IT is evolving into a "Make or Buy" decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud business applications and services across multiple cloud delivery models.
The enterprise market will drive IoT device adoption over the next five years. In his session at @ThingsExpo, John Greenough, an analyst at BI Intelligence, division of Business Insider, analyzed how companies will adopt IoT products and the associated cost of adopting those products. John Greenough is the lead analyst covering the Internet of Things for BI Intelligence- Business Insider’s paid research service. Numerous IoT companies have cited his analysis of the IoT. Prior to joining BI Intelligence, he worked analyzing bank technology for Corporate Insight and The Clearing House Payment...
"Optimal Design is a technology integration and product development firm that specializes in connecting devices to the cloud," stated Joe Wascow, Co-Founder & CMO of Optimal Design, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular Information Management® solutions for high-performance data protection, universal availability and simplified management of data on complex storage networks. CommVault's exclusive single-platform architecture gives companies unp...
Electric Cloud and Arynga have announced a product integration partnership that will bring Continuous Delivery solutions to the automotive Internet-of-Things (IoT) market. The joint solution will help automotive manufacturers, OEMs and system integrators adopt DevOps automation and Continuous Delivery practices that reduce software build and release cycle times within the complex and specific parameters of embedded and IoT software systems.
"ciqada is a combined platform of hardware modules and server products that lets people take their existing devices or new devices and lets them be accessible over the Internet for their users," noted Geoff Engelstein of ciqada, a division of Mars International, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.