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Outsourcing, Offshoring, and What Does It Mean To Me?

As a professional writer, I can be pretty particular about word choices and their meanings. And, as an IT consultant, I am pretty conscious of staffing models. So, when the word “outsource” is used, the proper definition would mean simply farming the job out to an outside provider. However, the word has been abused and misused to mean “offshoring” all too often. Actually, offshoring in the US means exactly what it sounds like: receiving or implementing a solution from beyond our borders. Easy.

Anyone who hires a consultant or solutions provider is outsourcing. If you go to a doctor, go to a restaurant, or hire someone to mow your lawn, you are outsourcing. Only if the work is going out of the country is it offshoring. Outsourcing of IT work has been around since before the dawn of the commercial Internet. Outsourcing is not a threat or competitor to the US workforce. As a US worker doing consulting, outsourcing has kept me gainfully employed [on and off] for many many years. However, offshoring is or can be that threatening competition to US IT workers.

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Just as with hard goods like autos, electronics, and Levi jeans – American companies sending manufacturing overseas to get a better price to remain competitive domestically, US IT shops send development work overseas – most frequently India – to likewise try to get the most for their money. OK, now that we’ve established the definitions, let’s get down to the nitty-gritty.

Personally, the idea of US corporations sending “our jobs” overseas used to get my blood up. The nerve. They have the gall to stamp “Made In The USA” on their wares while at the same time shipping the IT and customer service jobs to India or wherever. But now, more than a decade later, I see for what it is: it is what it is. It doesn’t matter whether I like it, and I realize I probably can’t change it. But what does matter is that I understand what is means to me as a worker and job seeker – especially since I am a consultant with contracts averaging 3-6 months, I am a professional job seeker.

In my observations, I have seen offshoring done with varying degrees of success. There are many challenges that management has been remiss to see or acknowledge. You would not be alone if you felt dissed by your bank or your computer’s manufacturer if you reached an unempowered script reader working night shift whose only solution was to quote you reasons why they could not help you and end the call by telling you they were happy to help you. I stopped buying Dell computers for several years for that very reason.

As an IT consultant, I saw first hand how giant IT shops brought their offshorees onshore to try to save a buck. Paying an H1 visa “hostage” less than half of what an American worker would require, they could hire twice as many, right? That was their thinking anyway. But with many of the challenges including culture gaps and communications breakdowns, they had to hire 3 people to do the job of 1, and spent more money doing it. For one major telco I worked for, the release date for their prize ecommerce redesign would slip, and slip, and slip, and then slip some more. There was always an excuse, they proved that sheer manpower was not enough. Funny thing to go along with it is that the fire marshal came and locked down enforcement on the number of people who could come into the building. With putting 4 people to a workstation on the sixth floor, they exceeded occupancy capacity. They spent more money by their attempt at offshoring, and their end product suffered for it – and so did their shareholders. That was several years ago.

I have worked on quite a few projects with offshore models since then. The challenges are still there. Some things have not changed much. But, others have. What has changed is that I have gotten more experience with it. I have learned much more about Indian cultures and mindsets, thereby helping me be more efficient and effective in my jobs on offshored projects.

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A recent article I read stated that some people believe there has been a rethinking and a reduction in US companies offshoring their IT work. I might agree that there has been a shift, but not a reduction in my opinion. A recent stint at a large US retailer revealed multiple offshored projects. Regardless, the question still remains, “what does it mean to me?”. Practically speaking, I have indicated on my resume that I am accustomed to working in culturally-diverse settings and in offshore models. This helps when recruiters do keyword searches and when hiring managers are looking for veteran IT guys.

What about you, what do you think about offshoring?

PS: You can say “regardless”, and you can say “irrespective”, but don’t let me hear you say “irregardless” ’cause there ain’t no such word!

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