Offshore Strategy and Quality

By Larry Dignan  |  Posted 2003-09-05 Print this article Print

of Life Issues"> Weber also wants some face time before moving parts of his infrastructure offshore. Hes likely to bring overseas programmers and engineers to the U.S. for six months. The full cost savings is delayed since SevenSpace will have to house and feed his new workers, but the company will save as much as 80% when they go back to India, he says.

Even Bingham, an ardent supporter of offshore outsourcing who marvels at the creative destruction of the U.S. economy, has his limits. He says "core" research and development will remain domestic. Binghams job as CEO, the finance and legal teams, and the folks who cook up the strategy for Cadence will all stay stateside.

Would Cadence one day move its headquarters and operations elsewhere, altogether? Bingham says no way. Indeed, he argues that if the economy creates a lot of jobs, its likely that technology talent that currently resides in India and other countries will flock to the U.S. to start companies that will hire Americans and pay taxes, analysts say.

"The core technology development and strategy best resides where it is today," says Bingham. "The reason is that this is the right place to be for the things that have to come together. The U.S. has unmatched infrastructure. The U.S. has a robust leading education system, venture capital, capital markets and an open, free legal system. Its also a safe place to live. Most countries simply cant replicate that."

Business Editor
Larry formerly served as the East Coast news editor and Finance Editor at CNET Prior to that, he was editor of Ziff Davis Inter@ctive Investor, which was, according to Barron's, a Top-10 financial site in the late 1990s. Larry has covered the technology and financial services industry since 1995, publishing articles in, Inter@ctive Week, The New York Times, and Financial Planning magazine. He's a graduate of the Columbia School of Journalism.

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