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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Donald Wennerstrom who wrote (7618)	10/18/2003 8:03:54 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 25522

Well, I might be a voice in the wilderness, but I work with offshoring every day and my feeling is that in the west coast, at least, the trend has peaked. Carr says he became aware of the problem when his company used offshore firms for projects that involve complex integration issues or nonstandard development. “We’ve struggled tremendously with those,” he says. Based on his experience, Carr says it’s fine to buy offshore apps like a webpage that can be tested in a simulated environment. “But,” Carr warns, “if you can’t model your environment adequately with offshore projects, you’re going to get into trouble. You’ll spend a lot of time debugging and burn up those forecast savings in extra testing cycles.” comment.cio.com There are some very accurate comments at the bottom of this piece from CIO magazine. One very humorous remark was made by a VP at AT Kearney, his comment claimed that CIO magazine had a "hidden agenda" to try to slam offshoring in this article. Anybody that reads CIO magazine knows that they are about as opposed to offshoring as your average CIO!! AT Kearney is a firm that stands to benefit from Offshoring, as do Accenture and Gartner, (because they are essentially consulting houses that need very cheap labor to make their model work, something they didn't have in the 90s). This is how far we have come, some AT Kearney guy accusing CIO of being biased against offshoring, LOL. The reality is that we have the IT industry that became bloated and inefficient in the 90s and we need to bring costs back inline. Offshoring was something that was attempted and it works for some things but what we have right now is something of an overshoot imho. IBM may indeed hire most of its new staff in india, after all they are essentially a consulting company. But there are risks to this approach and hopefully they are considering these.