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ECT News Community   »   E-Commerce Times Talkback   »   Re: Outsourcing Fears Debunked in Teleconference

Re: Outsourcing Fears Debunked in Teleconference
Posted by: Elizabeth Millard 2004-03-19 11:17:49
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If one topic has become a hot potato in both the political and employment realms, it is offshore outsourcing. Global staffing company Accountants In India (AII) hosted a teleconference Tuesday to discuss major outsourcing issues like security, ethics and workflow. Although the tone of the teleconference was to assure participants that work sent to India is safe and beneficial, there was still talk about the many issues that crop up when offshore outsourcing is introduced at a company.

You ask the "masters of bunk" to debunk now?
Posted by: remerton 2004-03-20 05:50:00 In reply to: Elizabeth Millard
Come now! As someone who has the shameful entry on their resume as a practice manager sending jobs to offshore locations, I think I can see offshoring bunk when I read it. To say that offshore employees are subject to the same laws as a US employee overseas is absurd.
FACT -- US Laws can not touch any Indian firm unless Indian courts deem to follow the case (which they usually do not). Ask the employees and stockholders of Silverline Technologies if you want an example.
FACT -- Once you give up control of your data, unless that data remains subject to consumer and business laws in the US the ONLY ones who are going to be held liable are the US firms that send it outside. Hold on to your hats, guys. When your clients are showing up on those identity theft commercials, you can point the finger offshore all you want. However, it's your company that is going to hold the liability. Have you tried suing an Indian firm lately? Once they shut down their onshore operations and escape to Mumbai, you get to hold the bag.
FACT -- Offshoring firms give all sorts of assurances that are little more than smoke & mirrors. Ask any manager that has received a resume for an Indian Senior Program Manager that holds an MBA from an exotic sounding institution. Through their US business view, its sounds great and they expect more than what actually arrives. "Senior Program Manager" is someone who has attended a 5 day class, read a book, and has actually written a program that runs. "MBA" is *not* Masters of Business Administration", but rather a certificate program from a mail order course that takes less than a month to complete inclusiding shipping time.
Its is way past time to get past the illusions that are being thrown out as the wonders of offshoring. Get past the greed that kicks in when sales types tell you you can save 75%.
TCO no longer means Total Cost of Ownership - Its now "Total Cost of Offshoring". Take into account that you PAY for rooms filled with these 25% offshore people to argue about solutions for days on end. Add in all the expenses to your reputation for late delivery. Add the extra you spend in travel for sending your remaining US managers on world tours to find out what is actually going on. Add in your legal attempts to remedy the situations and failing.
Give Michael Dell a ring and ask why his call centers are coming back onshore. Give Wachovia and ask them to tell you about the success of their offshoring program. Call Volkswagen and ask them to tell you how pleased they were with the ethics of their offshoring partner a few years back. Try asking Lockheed how much they spend on their managers travel expenses to various parts of the globe.
When you are done, ask yourself why you would EVER go down this road and why you would believe some offshore accounting firm tell you that everything is OK.
If you still want to send your money off to a far away place on a "get rich scheme", I am sure you also get email from someone claiming to need your help getting riches out of Zimbabwe. Maybe you should reply.
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