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Politics : Stockman Scott's Political Debate Porch

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To: JBTFD who wrote (31209)	11/9/2003 1:25:21 PM
From: Lizzie Tudor	Read Replies (2) of 89467

theres a lot of stuff in the paper on offshoring today. This really illustrates the problem imho. The consulting houses really overplay their hand in what kind of savings can be had, because of course they stand to benefit. Fantasy- this company is claiming 20% savings with an 8:1 ratio: Avinash Vashistha, managing director at San Ramon-based offshore consulting firm NeoIT, loves telling the story of asking a Silicon Valley executive this year which jobs he could offshore. ``Could you move this person's job?'' asked Vashistha. ``Oh, no,'' the executive said. ``I couldn't move her job. She's been here for 25 years. It would take eight people to do her job.'' ``Very well, we'll hire eight people to replace her,'' Vashistha said. NeoIT calculated that the company could hire eight people to replace that one longtime employee and still save 20 percent by moving the entire division overseas, Vashistha said. siliconvalley.com vs. reality The Hidden Costs of IT Outsourcing While moving software development and tech support offshore is all the rage, many companies find the overall savings aren't that great yahoo.businessweek.com It seems like the people making these grand claims about offshore cost savings are always in the business of providing consulting services. Offshore projects are like taking university courses over the internet. You can do it, it sortof works. But the results just aren't as good as the original.

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