Close
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home IT Management
    • IT Management

    Can Outsourcing Save Jobs?

    By
    John Moore
    -
    March 25, 2005
    Share
    Facebook
    Twitter
    Linkedin

      eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

      Fear of job loss has always clouded the reputation of outsourcing, going back to the days when the practice was known as “doing the Kodak.”

      In 1989, Eastman Kodak Co. outsourced its data centers to IBM and later cut deals with Digital Equipment Corp. and Businessland for networks and desktops, respectively. Kodak outsourced to focus on core business lines.

      But outsourcing took on a different flavor when it got popular with other companies in the early 1990s.

      After a binge of leveraged buyouts during the 1980s and the 1991 recession, many firms went on a cost-cutting track: Outsourcing IT emerged as one more way to cut expenses.

      For the most part, outsourced IT personnel ended up with jobs at various systems integration and outsourcing companies.

      But still, any job change is unsettling, and in some cases, the personnel shifts were massive.

      Electronic Systems Corp.s 1994 outsourcing pact with the United Kingdoms Inland Revenue involved the transfer of thousands of employees.

      Last year, 2,800 workers were relocated once again when Capgemini won the competition for a renewal of the Inland Revenue deal.

      Job loss worries these days focus on outsourcers and integrators moving operations offshore.

      Service providers, looking to become more cost-competitive, have moved tech support and software development functions to India and other nations with lower labor costs.

      The resulting press coverage and congressional interest have generated considerable attention—most of it negative.

      The backlash may have influenced some companies to open software development centers in mid-tier U.S. cities with lower real estate and personnel costs.

      /zimages/1/28571.gifClick here to read more about how a major U.S. bank used offshore outsourcing in an effort to thwart money laundering.

      David Andersen, a partner and outsourcing specialist in the Los Angeles office of Bryan Cave LLP, believes outsourcing critics have taken a narrow view of the practice.

      He contended that different flavors of outsourcing exist and not all of them result in a flurry of pink slips.

      /zimages/1/28571.gifRead the full story on CIO Insight: Can Outsourcing Save Jobs?

      /zimages/1/28571.gifCheck out eWEEK.coms for the latest news, reviews and analysis on IT management from CIO Insight.

      John Moore
      John writes the Contract Watch column and his own column for the Channel Insider.John has covered the information-technology industry for 15 years, focusing on government issues, systems integrators, resellers and channel activities. Prior to working with Channel Insider, he was an editor at Smart Partner, and a department editor at Federal Computer Week, a newspaper covering federal information technology. At Federal Computer Week, John covered federal contractors and compiled the publication's annual ranking of the market's top 25 integrators. John also was a senior editor in the Washington, D.C., bureau of Computer Systems News.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.

      MOST POPULAR ARTICLES

      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Applications

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Applications

      Kyndryl’s Nicolas Sekkaki on Handling AI and...

      James Maguire - November 9, 2022 0
      I spoke with Nicolas Sekkaki, Group Practice Leader for Applications, Data and AI at Kyndryl, about how companies can boost both their AI and...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×