Stop Offshoring
Thursday, November 15, 2007
It looks like the devaluation of the dollar and rising wages overseas, making offshoring less attractive financially, is making some companies reconsider their offshoring strategy. According to an eWeek article, "Organizations are beginning to realize that much of what is lost in outsourced relationships can cost nearly as much money as they were saving in the first place." That's what I've been saying all along.
Friday, November 02, 2007
Following up on my last post about the declining financial advantages of offshoring, an ITBusinessEdge blog talks about the same phenomenon. It finds that some companies are finding it as cost-effective to hire workers in small-town America as in India.
All is not rosy, however, as CIO Insight reports that the cost differential will mean that low-level IT work will still be offshored, but higher-level positions are more likely to remain in the U.S. I cringe when I hear predictions like that because offshoring proponents have been saying for years that offshoring itself would only affect low-level jobs. We now know higher-level jobs are not immune, so why should I believe they are safer due to the weaker U.S. dollar?
I hope we're seeing a return to sanity and keeping American jobs within the country, but I'm wary of so-called expert forecasts.
