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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: Lizzie Tudor who wrote (44910)11/20/2005 7:00:24 PM
From: arun geraRead Replies (2) of 306849
 
In Silicon Valley, the outsourcing began because the startups blew up all the money and VCs were not interested in investing in tech sector. Now that the money is being released more freely again, the new CEOs may again do the same. Managing an outsourcing relationship is no fun even if there are large savings. It is always easy to hire a person who is local and work with him/her in the 3D world. Another reason is that SV requires better techies than IT departments of big business.

The results are mixed. I am sure there are disappointments in outsourcing work. However, I have seen too many onshore teams prodcue nothing of value with 10s of millions of dollars in budget. So the key is project management, which is tough enough when working with all resources in one office. When you factor in time differences and total virtualization, ordinary managers cannot pull it off.

>Anyway the reason it took so long for jobs to recover in SV after this recession was only partly due to the severity of the recession. A significant problem was that Gartner had every engineering and IT dept offshoring everything but the kitchen sink. After a year or two with the results, staff was rehired in the US, and now we have a boomlet in SV again. Duh.>
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