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Thursday, September 13th, 2007

Off Shoring Major Topic at the Arizona Technology Council’s CIO Forum

This 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.”

6 Responses to “Off Shoring Major Topic at the Arizona Technology Council’s CIO Forum”

  1. Erangamlitatt Says:

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  2. markofando Says:

    Want to start your private office arms race right now?

    I just got my own USB rocket launcher :-) Awsome thing.

    Plug into your computer and you got a remote controlled office missile launcher with 360 degrees horizontal and 45 degree vertival rotation with a range of more than 6 meters - which gives you a coverage of 113 square meters round your workplace.
    You can get the gadget here: http://tinyurl.com/2qul3c

    Check out the video they have on the page.

    Cheers

    Marko Fando

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  4. Zeratulss Says:

    24% of Americans believe that the Internet is able for a time to replace them with a loved one. For obvious reasons, such sentiments particularly prevalent among residents of the United States alone. Both men and women can replace the beloved, beloved trips to the World Network. However, the willingness to such transactions vary among followers of different ideologies: conservatives frowned relate to this idea, and the “progressive-minded” on the contrary, Nerkarat it.

    Study company Zogby International also showed that every fourth resident of the United States have their own representation in the web-site or internet-stranichka. Creating internet-dvoynikov most passionate about young people (18-24 years of age) - 78% of them have personal Web page. In doing so, 68% of those surveyed said that the World Wide Web, they do not appear in its original capacity, their virtual overnight seriously different from the real.

    Only 11% of Americans would agree implantable microchip in his brain, which would provide them with direct contact with the Internet. But the situation is changing, in the case of children. Almost every fifth resident of the United States would agree to equip their child safety device which would allow him to track the movement in space on the Internet.

    10% of U.S. stated that the Internet brings them to God. ” In turn, 6% are convinced that because of the existence of the World Wide Web God away from them.

    And how you feel? Sorry bad English.

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  6. rivers Says:

    interesting article - this is just terrible how they didn’t consider the ethical questions about this

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