Off Shoring Major Topic at the Arizona Technology Council’s CIO Forum
Thursday, September 13th, 2007This morning I ventured out to the Arizona Technology Council’s CIO forum. Anna Frazzetto, vice president of Technology Solutions for Harvey Nash USA presented their findings from the IT Leadership 2006/2007 CIO Survey followed by a round table discussion by 5 business people in various CIO related roles from local Phoenix businesses.
Having an Internet bent on everything I do, I was curious to hear how CIO’s for companies view the Internet. Do they see it as a marketing/sales project? Is it the responsibility of IT? What challenges do CIOs face when dealing with online CRM systems like Salesforce.com or by making company data available via externally accessible intranets?
Instead, the only question posed to the round table that was not related to off shoring was in regards to virtualization. I was in awe that there wasn’t ethical questions about off shoring, instead it was more a conversation as to what to off shore and how to manage it. Places like India, China, Vietnam, and even Mexico are fully capable and are in fact doing off shore projects for very large US companies. This seems to be a given in the CIO world.
The reason seems to stem from available resources. US colleges are graduating less than 10% of their students in computer and IT related fields. Less available bodies means greater costs to recruit and hire these students. Places like India can have as high as 85% of their graduating students in IT related fields. And here, inexpensive labor does not mean cheap work. It’s purely supply and demand.
When deciding what type of activities to off shore, panelist Fred Mapp, President of Quality Service Solutions, put it best, “You need to know what are your company’s core competencies.”
Obviously, you don’t want to off shore or outsource what makes you unique. Instead, you want to off shore those activities that aren’t productive for your company to be part of.
And don’t fall for the 80 - 90% cost savings hype that is often bantered about. Instead, you may expect to save about 40 - 50% after factoring time to manage and deal with the project.
I don’t want to get into any ethical conversation on this topic. If you feel strongly one way or another, I recommend discussing the issues with the Computer Science department at your local university. Also, kids learn what they want to be when they grow up at a young age. When was the last time you told your kids, “Computer Science could be fun. That’s a profession I would look into.”


It felt good to get out of the house and meet some true Phoenicians today. I attended the Phoenix Chapter of the American Marketing Association’s Luncheon, featuring E.B. Lane Advertising. They discussed Emotional Memory and Advertising Effectiveness by presenting their case study on their client, Cable One.
I love to extol the virtues of blogging to our clients. I’ve been blogging on several different blogs for many years now. However, for those who have never blogged, figuring out how to construct the language of a blog post for maximum exploitation is something of a mystery.
While in Reno, I lamented the fact that I had a LAN line in my house. I was resolute that I would not give phone marketers the opportunity to harass me by avoiding the LAN line altogether in Phoenix. During my first week in my home office, my plan to solely use my cell phone died a horrible death. Even though coverage for at&t seems ubiquitous in the area, calls were dropping faster than leaves into my swimming pool (pool maintenance is a whole separate subject).
