Future of offshoring

[Clippy]

Has offshoring in IT peaked?

i.e. have all the companies that can offshore done so or does this trend still have more to play out and if so, for how long?

[BrilloPad]

Has offshoring in IT peaked?

i.e. have all the companies that can offshore done so or does this trend still have more to play out and if so, for how long?

I really really hope so. But ClientCo offshoring more and more - despite the existing offshore mob stuffing everything up! muppets! I wish I knew why...

[sasguru]

muppets! I wish I knew why...

1. Goes down well with share-holders. Cutting costs don't you know.
2. Gives you someone to blame.

HTH

[BrilloPad]

1. Goes down well with share-holders. Cutting costs don't you know.
2. Gives you someone to blame.

HTH

So basically short-termism?

But will the trend ever reverse or is it impossible to predict?

Whenever I have to deal with the offshore movb I am rude and abusive. Well I am usually rude and abusive. I mean particularly.

[moorfield]

Agree with that BP. It's very hard not to get rude and offensive with the offshore lot, particularly the sub-continental kind.

[Clippy]

1. Goes down well with share-holders. Cutting costs don't you know.
2. Gives you someone to blame.

HTH

But at some point, there will be no more cost savings to be had, right?

Then what?

[Pondlife]

But at some point, there will be no more cost savings to be had, right?

Then what?

Move it somewhere else ...

India -> Malaysia -> China -> Swansea

[DiscoStu]

But at some point, there will be no more cost savings to be had, right?

Then what?

Once salaries in India have been driven up sufficiently to make them uncompetetive, there will be a new round of offshoring from India to China / Vietnam / anywhere else cheap.

[rootsnall]

1. Goes down well with share-holders. Cutting costs don't you know.
2. Gives you someone to blame.

You've hit the nail on the head, the big outsourcing/offshoring jobs I've worked on were all knee jerk reactions by boards under pressure after tulip results. They announce a big outsourcing deal, juggle some figures and set the PR machine in action and then pay themselves a big bonus for doing a good job and saving a fortune. A few years down the track, IT is a big mess, the Co is well out of pocket but who gives a tulip as the genius CEO has long since moved on with bonus in pocket. The new board can then blame the outsourcers and move onto another useless bunch of outsourcers and pretend all is well for a few years.

[Cheshire Cat]

You've hit the nail on the head, the big outsourcing/offshoring jobs I've worked on were all knee jerk reactions by boards under pressure after tulip results. They announce a big outsourcing deal, juggle some figures and set the PR machine in action and then pay themselves a big bonus for doing a good job and saving a fortune. A few years down the track, IT is a big mess, the Co is well out of pocket but who gives a tulip as the genius CEO has long since moved on with bonus in pocket. The new board can then blame the outsourcers and move onto another useless bunch of outsourcers and pretend all is well for a few years.

Yep, this is pretty much my experience too.