Close
  • Latest News
  • Artificial Intelligence
  • Video
  • 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
  • Video
  • 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

    IT Labor Boomerangs Back Home

    Written by

    Renee Boucher Ferguson
    Published September 6, 2004
    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.

      For all its promise of cost savings, enterprises disillusioned and dissatisfied with offshoring IT labor are starting to bring that work home.

      Language barriers, time zone differences and even unscheduled overtime are just some of the issues causing some U.S.-based enterprises increased frustration and pushing them to not just reconsider their offshoring policies but scrap them outright.

      Joe Baca, for example, is backing out of a contract with an India-based company that has handled his organizations SAP AG enterprise software installation for the past two and a half years. In doing so, Baca expects to lose about six months worth of service fees and pay about $5 more per hour to have the work done in the United States. But for him, its worth it.

      “The cost savings [of outsourcing] are not enough to outweigh some of the frustrations with the cultural differences of having outsourcers based in India,” said Baca, director of application development with a $400 million Midwestern manufacturer that he preferred not to name. “We cant do anything in an emergency. Our hands are tied,” Baca said. “We have to go back and say, Please translate this. In a service-level environment, the overruns are what are killing you. Overtime is an hourly rate, and its not built into the [outsourcing] budget.” Baca is talking with Milwaukee-based CCI Corp. to pick up SAP R/3 software monitoring and plans to hire SAP ABAP programmers to update the applications in-house.

      Baca is not alone. A recent survey by Boston-based IT research company AMR Research Inc. reported that less than one-third of the 220 companies surveyed that currently outsource some IT work are satisfied with the cost savings enjoyed by the process. Still, AMR predicts that the number of companies that will use IT outsourcing in the next two years will grow significantly.

      /zimages/3/28571.gifeWEEK Executive Editor Stan Gibson says that outsourcers can apply lessons learned to drive superior deals. Click here to read more.

      While large software developers such as Oracle Corp. and SAP have shifted a lot of internal development to places such as India and China, some vendors are finding that “Made in the U.S.A.” has a certain cachet.

      Enterprise applications management software developer Enetfinity Technologies LLC is considering moving its financial application programming back to the United States for just such reasons. Kelvin Johnson, vice president of sales and marketing and a technical consultant at Enetfinity, is experiencing difficulties with an India-based development center.

      “Our experience [has been] that a lot of people there are good at programming, but they arent good at the business-logic part of application development,” Johnson said. “You can give them a project to work on, and theyll do maybe a good 75 percent of what you want. But theres that 20 percent youll end up pulling your hair out about that youll have to redo or bring other people in from over here to finish or redo.”

      With his current contract up in December, Johnson is considering his alternatives. “Im not sure what well do, to be quite honest,” said Johnson in Wayne, Pa. “They have done some good things, but you contract for more—we expected more than weve got. Most people are just looking for results. When theres money involved and you end up losing, that doesnt put a good taste in your mouth.”

      Renee Boucher Ferguson
      Renee Boucher Ferguson

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      MOST POPULAR ARTICLES

      Artificial Intelligence

      9 Best AI 3D Generators You Need...

      Sam Rinko - June 25, 2024 0
      AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
      Read more
      Cloud

      RingCentral Expands Its Collaboration Platform

      Zeus Kerravala - November 22, 2023 0
      RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
      Read more
      Artificial Intelligence

      8 Best AI Data Analytics Software &...

      Aminu Abdullahi - January 18, 2024 0
      Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
      Read more
      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
      Video

      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
      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.
      © 2024 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.

      ×