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Techies Sound Off on Offshoring
Monster Technology ^ | Allan Hoffman

Posted on 12/01/2002 3:11:24 PM PST by FR_addict

Techies Sound Off on Offshoring by Allan Hoffman Monster Tech Jobs Expert US technology professionals who were job-hopping and earning hefty bonuses just a few years ago now face an uncertain future, their career prospects roiled by offshoring -- the outsourcing of IT work to companies in India and other nations.

Frustrated by the willingness of US companies to shed workers and ship work overseas, techies are expressing their dissatisfaction in phone calls to industry organizations, emails to legislators and posts to online discussion forums. Some techies say political action is required to blunt the trend's effects, while others say offshoring is irreversible, the result of unbridled capitalism without regard for workers and their communities.

More on Offshoring

This article is the third installment of a three-part series about offshoring. Is it a threat to IT careers or an opportunity for advancement? Post your comments in the Tech Jobs message board.

Part one, "Are Tech Jobs Headed Offshore?," explores what technology executives think about offshoring and its impact on North American IT projects and staff.

Part two, "If Offshoring, Then What's Next for Techies?" asks tech execs for their perspective on the effect of this trend on tech careers -- and what techies should do to respond.

"There's a lot of complacency and apathy and fear, in terms of what to do," says Marcus Courtney, cofounder and president of WashTech, a union for high tech employees. "We can no longer afford to be complacent."

Techies Sound Off

Two recent Monster articles about offshoring garnered hundreds of messages in Monster's Technology Forum, mostly decrying the trend. With titles such as "Exporting Our Future" and "Shipping High Tech Out," the posts give voice to the anxiety and anger of techies who have lost jobs or seen prospects for advancement recede.

"I think this is a deplorable trend," wrote one Monster member. "It is an attempt to beat down the salaries on nonmanagement jobs to the level of unskilled workers … [so] there will be no reason for workers to expend the effort and expense in obtaining a high tech education."

Ed Marx, a programmer from Middletown, New Jersey, says he was considering a career change, perhaps into teaching, after being laid off as "a direct result of an offshore initiative." He was unemployed for several months, until he found a contract position.

Like others, Marx -- with 26 years of industry experience -- was caught off guard by the speed of the IT turnaround. "It was such a vital, in-demand kind of skill," he says. In 2000, Congress increased the number of visas available for foreign techies. "It surprises me that it could turn around in two years. I guess they just changed the strategy -- not to bring the people to the work, but bring the work to the people."

No Job Gain -- No Job Training

Another Monster member, Richard, posted a message in Monster's Technology Forum about being laid off when his job was sent to Juarez, Mexico. A federal training grant for individuals whose jobs were lost to Mexico was unavailable to him. The reason? The grants only apply to manufacturing jobs, not service positions.

"I would think the government should be just as concerned with the software industry as they are with manufacturing," says Richard, a programmer from Colorado Springs, Colorado, who is now seeking training in .NET and Web services.

Janet Ruhl, who surveys IT salaries at Realrates.com, says her data indicates declining employment among consultants, even those with up-to-date skills.

"Anecdotally, what I am hearing is that companies that have had long-term relationships with consultants -- 10 years and more in some cases -- have suddenly shifted their entire IT function abroad, leaving those consultants high and dry," she says. "The explanation is always cost."

Of course, not all techies see offshoring as an unremitting danger. "The truth is, most companies will pay a premium for face-to-face software and Web development, and most IT jobs should remain in the US," says Eric Leung, a Web developer from Long Beach, California, who believes "offshoring's bark is likely louder than its bite."

Craig Connell, who serves on the board of the Programmers Guild -- many of whose members oppose offshoring -- questions the usefulness of some proposals, such as a tariff on foreign software.

Time To Organize?

But Sharon Marsh Roberts, chairperson of the government relations committee of the Independent Computer Consultants Association, says programmers have to be ready for political action -- and compromise -- in order to effect change.

Techies must organize and gain representation, says WashTech's Courtney. "I don't believe that enough workers, at this point, understand what this trend means for the long-term picture of this industry in this country," he says.

"This is the warning bell. Something is amiss here, and it isn't just isolated to customer service or email support workers," Courtney continues. "It could happen to you, and we need to make sure we have a voice over what this means for the future of our industry."


TOPICS: Business/Economy; Technical
KEYWORDS:
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Our technical jobs, including R&D, are being sent to offshore companies, mostly Indian companies, while the top execs compensate themselves with huge bonuses and kickbacks from these companies. This is a very short term solution and the results will be felt for years to come.
1 posted on 12/01/2002 3:11:24 PM PST by FR_addict
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To: FR_addict
It's up to us, as tech workers, to keep our productivity up to where it's more cost effective to use us, rather than off-shore workers.

If we can't make the advantages of language, easy access, education, and technology work for us to the extent that we're more effective and more productive than off-shore workers, we don't deserve those high salaries.
2 posted on 12/01/2002 3:19:45 PM PST by jdege
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To: FR_addict
Also an open door for our enemies to send spyware, etc., along with the 'application' code.
3 posted on 12/01/2002 3:24:15 PM PST by Ed_in_NJ
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To: FR_addict
Thanks for the post, my job currently being reviewed for "offshoring"...just waiting to see. I work on a legacy system so I heard my company won't outsource it, but then again, who knows. I have been preparing myself to teach so that I can at least pay the mortgage, even if I have to take a $35,000 pay cut. I'm almost 42, female, working on the mainframe...it's not like I can waltz out to another company and get hired on, they are all offshoring. I keep hoping for my musician/singer husband to get that record deal quick so I can just ride a tour bus instead of work....
4 posted on 12/01/2002 3:27:12 PM PST by MelBelle
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To: Ed_in_NJ
I'm waiting for spyware to be introduced or a security leak at an offshore firm.
It will take just one case of a bank's records being compromised or an individual's medical records as the company sent a recording offshore to be dictated. The individuals affected should sue and sue big time.
5 posted on 12/01/2002 3:28:30 PM PST by lelio
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To: jdege
I have kept current all my career and continue to study and learn.

We are competing with workers may be getting as little as $5,000 a year. Now you tell me how we are going to compete.

There are also kickbacks going on. With such low salaries being paid to the workers, the offshore companies can easily afford the kickbacks. Some of the execs recommending the offshore companies are on the board of directors of the off-shore companies. The real problems are poor upper management and the US worker is suffering.

The current crop of top level execs are milking the companies. It is going to catch up with these companies eventually, but in the meantime, America is losing out.

6 posted on 12/01/2002 3:32:14 PM PST by FR_addict
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To: FR_addict
I feel for you, sort of in the same boat here. I know its not any compensation, but most offshore software projects fail. Course most local software projects fail, but with offshore you have the addition of:
language barrier
time difference (ie send out an email on Monday, they get it on Tuesday, and you hear back on Wednesday if you're lucky)
workers that don't have the technical skills, but will work 80 hours a week
no face time
nepotism about who gets the jobs

But if the company can do it for 1/4 of the price it would take to hire Americans then they view it as a savings. Unfortunately we're a victim of shortsightedness.

7 posted on 12/01/2002 3:39:44 PM PST by lelio
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To: FR_addict
Is there a small silver lining?
There may be an opportunity to let the offshore guys do the grunge work of actual programming while US ITers do higher-level, better-paying work such as system and software design, and managing offshore projects.
8 posted on 12/01/2002 3:42:07 PM PST by expatpat
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To: FR_addict
What's the source of this article? Thanks
9 posted on 12/01/2002 3:47:00 PM PST by Admin Moderator
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To: Admin Moderator
It looks like http://technology.monster.com/articles/offresponse/ from a google search. Its from a "Monster Tech Job Expert" no less! You can get the other parts of the article from there too.
10 posted on 12/01/2002 3:49:50 PM PST by lelio
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To: FR_addict
We are competing with workers may be getting as little as $5,000 a year. Now you tell me how we are going to compete.

Right there with you, man. The American dream is NOT to live like a third world country to compete with them on wages. There has to be another way.

11 posted on 12/01/2002 3:55:41 PM PST by RogueIsland
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To: FR_addict
I no more want off-shore programmers taking job in America from Americans than Microsoft wants illegal copies of their software in China.

What the Hell is the difference?
12 posted on 12/01/2002 3:58:16 PM PST by PatrioticAmerican
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To: MelBelle
I have changed careers. I was a unix sys-admin and process/tool developer for many years. I'm now in culinary school. Not too bad a transition at 41.

You want fries with that?

/john

13 posted on 12/01/2002 3:58:31 PM PST by JRandomFreeper
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To: PatrioticAmerican
Microsoft hires foreign workers illegally, so why shouldn't foreign people illegally copy their software?

They both are stealing.
14 posted on 12/01/2002 3:59:13 PM PST by PatrioticAmerican
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To: JRandomFreeper
"You want fries with that?"

At least you are serving American fries!
15 posted on 12/01/2002 3:59:42 PM PST by PatrioticAmerican
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To: RogueIsland
There has to be another way.

There is.

Be Excellent.

I consult for many of the largest IT Departments in the country. In almost every case, they are staffed by 10-to 20 excellent well trained and disiplined staff, and the other 80 to 90 percent are worthless wannabe's who would rather collect software and porn on their company's computers than to improve their skills.

I'm the guy who comes in and recommends who should be fired, who is worth training, and who is good enough to keep. Most people in IT dont know enough beyond being a danger to their company. This goes double for people working on homogenious Windows networks.

Excellent IT workers never have to fear unemployment. Their companies depend on them, and pay them almost whatever they ask. The problem is that it is hard to be excellent at IT, and a lot of people are sold a bill of goods by one of those fly-by-night technical training schools, who give out certifications just for showing up.

16 posted on 12/01/2002 4:06:53 PM PST by BuddhaBoy
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To: BuddhaBoy
I would say that you are correct if you are talking about a shop run by competent people. Unfortunately, some of us work in shops where even the IT director is, um, technologically challenged. I'm not sure some of these bozos are able to recognize the good talent from the zombies.
17 posted on 12/01/2002 4:12:15 PM PST by RogueIsland
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To: BuddhaBoy
Excellent IT workers never have to fear unemployment. Their companies depend on them, and pay them almost whatever they ask.

Yes and bad things never happen to good people, all Saturdays have excellent weather, and the sensitive, caring guy always gets the girl.

No American IT worker is so good, so irreplaceable (unless he is maintaining some legacy system written in Latin) that he cannot be replaced with an H1b who is every bit as smart and technical as he and will work for very much less.

When they came for the auto workers, I did not cry out because I was not an auto worker. When they came for the steel workers I did not cry out because I was not a steel worker. When they came for the textile workers, I did not cry out because I was not a textile worker. When they came for the middle managers, I did not cry out because I was not a middle manager. When they finally came for us techies there was no one left to cry out.

18 posted on 12/01/2002 4:21:44 PM PST by Tokhtamish
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To: FR_addict
Any job worth doing is worth management mucking up. In my IT experience, bad management has cost much more to companies than lazy (largely the ignored and demoralized) IT worker bees.
19 posted on 12/01/2002 4:21:57 PM PST by jz638
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To: FR_addict
IT going to Manilla, Philippines too.

From what we have observed, eventually these jobs will be back 'home' because the productivity is not there nor is the skill set required.

Unfortunately, man years of talent will have been lost.

20 posted on 12/01/2002 4:25:26 PM PST by OldFriend
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