Outsourcing and Unintended ConsequencesPosted 12:44 PM
My post of a week ago brought a number of comments, in the feedback and via e-mail, both on outsourcing and on the relationship between outsourcing and the lack of young people interested in technology careers. I mentioned that the Wall Street Journal reported on the curious anecdote that the children of many successful and prominent technologists are shunning education and career in technology. One of the reasons given was that they were perhaps more cognizant than most young people of the phenomenon of outsourcing. In one case, the parent was a venture capitalist who advocated that start-up companies establish their development teams in India to reduce engineering costs.
The responses I received provide some clarity on both the intended and unintended consequences of outsourcing. We have pursued outsourcing to some extent in order to achieve economic benefits; that is, to save money on developer salaries. By and large we have achieved that, although there have been exceptions noted in the press in cases where for various reasons the outsourced developers haven't resulted in the desired savings.
Perhaps another intended, or at least unavoidable, consequence is a more macro one—reduced levels of employment for technical professionals in the United States, as well as some level of salary depression for the group as a whole. From an economic sense, this is a desired outcome for those engaging in outsourcing, though undesirable for the individual developers.
So at first glance the impacts from outsourcing seem to be primarily economic. I've heard arguments that outsourcing of basic functions saves a corporation money that can be used to initiate new and innovating projects employing local developers, but that remains an economic argument (and an unproven one).
But as the Wall Street Journal article implied, there are consequences that are not economic, and that few if any of us thought about prior to initiating outsourcing. One is that young people seem to be less inclined to pursue these careers, making such skills less available domestically. This was a trend that was evident prior to large-scale outsourcing, because technical training tended to follow the growth and dips of the technology industries. After about 2000, technology jobs dried up, and the desire for training for those jobs went down.
We are currently seeing cautious growth in technology industries, but is it having an effect on career choice? I spoke to Richard Heckel, Technical Director of Engineering Trends (www.engtrends.com), a research firm specializing in engineering education trends. "There is," said Dr. Heckel, "a direct correlation between a student's expectations of a monetary reward as an engineer and enrollment in that field. This is a clear trend since 1945. We are currently seeing an increase in the number of engineering graduates in general, and will probably reach the largest number ever next year.
"Except," he continued, "for computer science and computer engineering graduates. Those numbers tanked in 2002, and continue to remain poor. I believe that the reason is outsourcing."
I offer no personal opinion on the subject of outsourcing and its effect on career choices. The issue has not impacted me, and I lack a basis on which to have personal feelings on the subject. But it does seem to me that utilizing talent irrespective of physical location is both inevitable and, individual pain aside, desirable. In time it should even result in greater levels of employment for all.
But it's pretty clear that one unintended consequence of outsourcing is its effect on future career choices in technology. Dr. Heckel concluded our discussion by saying, "You might think of engineering as the new form of liberal arts education." Technology and its applications have become so central in our everyday lives that to understand it thoroughly might be as important as reading and understanding the classics were in an earlier era
Article From:
http://www.ftponline.com/weblogger/forum.aspxID=11&DATE=04/09/2005&blog=#360
Friday, April 22, 2005
Wednesday, February 23, 2005
BioInformatics
As the technology enhancing people are working in new discipline. One of the emerging businesses of new world is BioInformatics. It is a very hot business abroad, but the question is where are we to get into that. Are we ready?, if not they what should be done to be ready?
What is BioInformatics:
BioInformatics is a field that combines efforts of biology, statistics and information technology together to work on new research on human cell, protein structure, and DNA strucuture, and analysis of acquired data to perform certain experiments that will enhance research in drug findings and disgnosis of diseases.
Scope of business:
These days major business investment is going into this domain. over billion dollar is investment is done and more is coming. For us as a developing nation there should be something we need to find out what we can get out of this investment, for now it can only be data management, but as time passes we can extend it to other things related to BioInformatics.
How we can achieve it?
We need to prepare ourself for that and jump into it. but the question is how can we prepare ourselves. Its a nice questions to ask and a difficult one to answer but its not impossible. As a first resort we plan a strategy, select related people, make business people realize it is a domain to invest in, educate people in domain. For that new courses can be introduced at graduation and masters level in selected universities, not now but in a year or two we will be able to have some workforce to work on that. Though it is difficult and requires patience but we need to do, and it is the time to start, its better early then late.
One more thing that comes in my mind, is our culture is crowd oriented, where the crowd is going whole country start running in that direction (worst example we have is operation badar), we need to stop it, we should only train enough people for this and start increasing as business increase. It will not be a good to create a hype of it.
It is good that our government is taking initiatives in this sector and start planning but they need to go fast pace rather then doing it their normal pace, which generally makes them early starters but last one to end.
Hope things will change and people, specially the businessmen of our country give a serious thought to it, and for once they stop just thinking for their short term profit and think of long term profit to country and themselves.
What is BioInformatics:
BioInformatics is a field that combines efforts of biology, statistics and information technology together to work on new research on human cell, protein structure, and DNA strucuture, and analysis of acquired data to perform certain experiments that will enhance research in drug findings and disgnosis of diseases.
Scope of business:
These days major business investment is going into this domain. over billion dollar is investment is done and more is coming. For us as a developing nation there should be something we need to find out what we can get out of this investment, for now it can only be data management, but as time passes we can extend it to other things related to BioInformatics.
How we can achieve it?
We need to prepare ourself for that and jump into it. but the question is how can we prepare ourselves. Its a nice questions to ask and a difficult one to answer but its not impossible. As a first resort we plan a strategy, select related people, make business people realize it is a domain to invest in, educate people in domain. For that new courses can be introduced at graduation and masters level in selected universities, not now but in a year or two we will be able to have some workforce to work on that. Though it is difficult and requires patience but we need to do, and it is the time to start, its better early then late.
One more thing that comes in my mind, is our culture is crowd oriented, where the crowd is going whole country start running in that direction (worst example we have is operation badar), we need to stop it, we should only train enough people for this and start increasing as business increase. It will not be a good to create a hype of it.
It is good that our government is taking initiatives in this sector and start planning but they need to go fast pace rather then doing it their normal pace, which generally makes them early starters but last one to end.
Hope things will change and people, specially the businessmen of our country give a serious thought to it, and for once they stop just thinking for their short term profit and think of long term profit to country and themselves.
As the technology enhancing people are working in new discipline. One of the emerging businesses of new world is BioInformatics. It is a very hot business abroad, but the question is where are we to get into that. Are we ready?, if not they what should be done to be ready?
What is BioInformatics:
BioInformatics is a field that combines efforts of biology, statistics and information technology together to work on new research on human cell, protein structure, and DNA strucuture, and analysis of acquired data to perform certain experiments that will enhance research in drug findings and disgnosis of diseases.
Scope of business:
These days major business investment is going into this domain. over billion dollar is investment is done and more is coming. For us as a developing nation there should be something we need to find out what we can get out of this investment, for now it can only be data management, but as time passes we can extend it to other things related to BioInformatics.
How we can achieve it?
We need to prepare ourself for that and jump into it. but the question is how can we prepare ourselves. Its a nice questions to ask and a difficult one to answer but its not impossible. As a first resort we plan a strategy, select related people, make business people realize it is a domain to invest in, educate people in domain. For that new courses can be introduced at graduation and masters level in selected universities, not now but in a year or two we will be able to have some workforce to work on that. Though it is difficult and requires patience but we need to do, and it is the time to start, its better early then late.
One more thing that comes in my mind, is our culture is crowd oriented, where the crowd is going whole country start running in that direction (worst example we have is operation badar), we need to stop it, we should only train enough people for this and start increasing as business increase. It will not be a good to create a hype of it.
It is good that our government is taking initiatives in this sector and start planning but they need to go fast pace rather then doing it their normal pace, which generally makes them early starters but last one to end.
Hope things will change and people, specially the businessmen of our country give a serious thought to it, and for once they stop just thinking for their short term profit and think of long term profit to country and themselves.
What is BioInformatics:
BioInformatics is a field that combines efforts of biology, statistics and information technology together to work on new research on human cell, protein structure, and DNA strucuture, and analysis of acquired data to perform certain experiments that will enhance research in drug findings and disgnosis of diseases.
Scope of business:
These days major business investment is going into this domain. over billion dollar is investment is done and more is coming. For us as a developing nation there should be something we need to find out what we can get out of this investment, for now it can only be data management, but as time passes we can extend it to other things related to BioInformatics.
How we can achieve it?
We need to prepare ourself for that and jump into it. but the question is how can we prepare ourselves. Its a nice questions to ask and a difficult one to answer but its not impossible. As a first resort we plan a strategy, select related people, make business people realize it is a domain to invest in, educate people in domain. For that new courses can be introduced at graduation and masters level in selected universities, not now but in a year or two we will be able to have some workforce to work on that. Though it is difficult and requires patience but we need to do, and it is the time to start, its better early then late.
One more thing that comes in my mind, is our culture is crowd oriented, where the crowd is going whole country start running in that direction (worst example we have is operation badar), we need to stop it, we should only train enough people for this and start increasing as business increase. It will not be a good to create a hype of it.
It is good that our government is taking initiatives in this sector and start planning but they need to go fast pace rather then doing it their normal pace, which generally makes them early starters but last one to end.
Hope things will change and people, specially the businessmen of our country give a serious thought to it, and for once they stop just thinking for their short term profit and think of long term profit to country and themselves.
Friday, February 04, 2005
Career Counseling
I have been working in this industry for almost 5 years, I have met many people and almost all of them don't actually know what they wana be. Where will they stand after say 2 years. They are not even sure are they moving in the right direction, first and the only preference is money they get. Yes, money is something we cant live without, but is that the only thing we should care about. This is because of the reason that a child is taught from childhood that he has to study to get better job, earn more money live a life, have kids and the cycle goes on and on.
Here I feel need of career counseling or guidance to youth, we the experienced people should go into institutions spent a day or two with the graduating class, see what their interests are and guide them accordingly. An initiative has been taken by Ponder Alliance in karachi, but there is a need to take this thing from universities to more elementary level when the student actually decides where he/she should go for professional studies.
I hope the day will come when there will be people thinking about community same as they think themselves, and understand the need to guide new generations in the right direction.
People are working but they are very few.
Here I feel need of career counseling or guidance to youth, we the experienced people should go into institutions spent a day or two with the graduating class, see what their interests are and guide them accordingly. An initiative has been taken by Ponder Alliance in karachi, but there is a need to take this thing from universities to more elementary level when the student actually decides where he/she should go for professional studies.
I hope the day will come when there will be people thinking about community same as they think themselves, and understand the need to guide new generations in the right direction.
People are working but they are very few.
Friday, December 31, 2004
late comers
We used to be punished when we enter in the class at the school, we learn from school that coming late is not a good thing, but as we grow we forget that lesson (including many) if you see around, my office starts at 9 am but at time no one is in office :) Why?
We dont care about time or is it something else?
We dont care about time or is it something else?
Friday, December 17, 2004
mobile theft
Today I had a very strange experience. Mobile theft and stealing is very commong, but the thing become interested becuasesomeone steal my mobile out of my jeans pocket. and I found out when I look for mobile in my pocket.I salute the expertise of the person but still I LOST MY MOBILE :(
Monday, November 08, 2004
Software Industry
I am working is this industry of Pakistan for almost 5 years, I have seen companied growing and then all of a sudden collapsing. I have seen more then 4 examples, some experience myself, some through contancts, the basic behind all is poor management, disorganization, and not able to take care of quality of their work, and they are least concerned about their resources.
In my opinion all these are the basics of any company either software or any other, and it requires more in software because the industry is not mature enough to run by itself, it is changing everyday, so proper organizination and management is required else the compnay wil not go too far. One more thing I would like to add to the list of failure is expecting too much and taking you client too hard. I have seen senior people they are so afraid of client that they listen to everything what client says, without giving it a second thought, what is he saying. they just accept and commit without concerning the right people moreover they commit in some unreasonable time, and then expect quality too....
Anyways... I am not blaming anyone its just that, everyone thinks working with a software firm is easy but it is not so they fail.
To be continued...
In my opinion all these are the basics of any company either software or any other, and it requires more in software because the industry is not mature enough to run by itself, it is changing everyday, so proper organizination and management is required else the compnay wil not go too far. One more thing I would like to add to the list of failure is expecting too much and taking you client too hard. I have seen senior people they are so afraid of client that they listen to everything what client says, without giving it a second thought, what is he saying. they just accept and commit without concerning the right people moreover they commit in some unreasonable time, and then expect quality too....
Anyways... I am not blaming anyone its just that, everyone thinks working with a software firm is easy but it is not so they fail.
To be continued...
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