yourdon index 8/30/04 9:27 am page 229...
TRANSCRIPT
Accenture, 157, 177accounting activities. See back-
office operationsACM, 34Adams, Ansel, 135Afghanistan, 96Africa, 27
outsourcing, author’s predictions, 191
physical work locations, 11potential competitive force, 25
agriculture, past offshoreoutsourcing, 4
Airborne Express, 217airline travel, 67Alta Vista, 123Amazon.com, 123, 158
book delivery to outsourcingcompanies, 153
e-commerce factor, 26American Airlines, 161American Express, 73Andersen Consulting, 177Andreessen, Marc, 28, 58, 140Apple Computers, 46, 157
interest in low-cost marketplace, 59
iPod, 58Macintosh
help desk expectations, 43PowerBook, 58word processing, 57
Arendt, Hannah, 85Argentina
emigration of Europeans, 225outsourcing expansion, 90
Arkwright, Richard, 224Asia
advanced economies in urbanareas, 216
H-1B visas, 206outsourcing, market research
analysis, 77physical work locations, 11
AskJeeves, 123Australia, 225
outsourcing, current attitudes, 56visiting knowledge workers, 213
automation, data entry workeasily outsourced, 63-64not easily replaceable, 63replacing data entry work, 62-63
automobile industry, 3availability, outsourcing
factor, 21-24
back-office operations andoutsourcing, 66-67airline travel, 67laboratories, 68-69medical analysis, 68test analysis and diagnosis, 68
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backlashby U.S. workers, 212potential disruptive factors, 95
Bangalore, 92article on Bangalore’s airport, 218help desks, 44high-speed Internet connection, 216IT offshore trends, 87lack of high-quality telecommunica-
tions in 1970, 64lack of reliable Internet access in
hotels, 217maintenance/enhancement work, 50Motorola, 162outsourcing
keypunch operations, 38locations of project
managers/teams, 56Motorola, 22-23panel, 162training workers, 170
physical work locations, 10Seychelles Island disaster centers, 97workers
availability, 12quality of work, 12
Bangladesh and outsourcingkeypunch operations, 38physical work locations, 10reasons for U.S. outsourcing, 22
Barbados and outsourcing, 44help desks, 44keypunch operations, 38
Barrett, Craig, Intel CEO, 91BearingPoint, China labor costs, 92Beijing
English communication, 93R&D centers built by U.S., 20
Bell, Daniel, 85Berners-Lee, Tim, 58
Bezos, Jeff, 140bin Laden, Osama, 104
recipient of U.S. tax payers’ information, 75
Birmingham, 44Black & Decker tools, 13Blackberry devices, 77Bladelogic, 14Bombay
outsourcingprivacy issues, 210salaries affecting U.S. salaries, 190SLAs, 175
potential for attack, 96purchasing software products, 59telecommunications
infrastructure, 24Bonds, Barry, 46Boston
costs of prestigious addresses, 159current telecommunications
infrastructure, 24help desks, 44outsourcing
SLAs, 175Wipro IT outsourcing firm inter-
preting hospital X-rays, 154worker availability, 12
Boston College, 188Botanical Gardens
New York City, 227BPR (business process reengineering),
17-18, 107, 152, 155backfiring on employer, 109current popularity, 153cycles, 152help desks, 46not overnight miracle, 153sorting out core competencies,
170-171
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231Index
utilization by outsourcing companies, 153
Braziloutsourcing, current attitudes, 56potential economic upheaval, 97
British Parliament, 225British Treasury’s Enterprise
Conference, 188Brooklyn, help desk staffs, 45Bulgaria and outsourcing
importance ratings in U.S., 222reasons for U.S. outsourcing, 22
Burger King, 50only work choice, 163workers safe from outsourcing, 62salary versus computer programmer
salary in India, 1989, 8Bush, President George W., 104
election campaign speeches, 192importance of digital
infrastructure, 216no proposals affecting workers and
outsourcing, 186business process reengineering (BPR),
17-18, 107, 152, 155backfiring on employer, 109current popularity, 153cycles, 152help desks, 46not overnight miracle, 153sorting out core competencies,
170-171utilization by outsourcing
companies, 153Business Process Resource Centre
Web site, 153Business Week, 92-93
outsourcing topic of coverage, 4Business Week Online, 107
Butterball, 45Byron, Lord, 221, 225
C++competency, learning new program-
ming languages, 56help desk offshore staffs, 46importance of business rules and
customs, 54Cajun delicacies, 158California
Infosys Technologies job creation,101
insurance claim processing, 72potential economic upheaval, 97quality versus price on products, 187
call centers/help desks, 41cost considerations, U.S.
cities, 43-44current status, 42evolvement, 41-42outsourcing, 44, 64
consumer-products industry, 45-46
follow-up activity, 65-66future product benefits, 65inbound and outbound
activity, 65Internet-based communication,
46-47offshore trends, 87-88outlook, 47-48programming, 46record-keeping technology with
workflow automation, 64technicians’ product knowledge
level, 64training required, 44-45
Camus, Albert, 103
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Canadaemigration of Europeans, 225high-wage countries, 185Maritime Provinces disaster
centers, 97medical training of foreigners, 70salary expectations of knowledge
workers, 9visiting knowledge workers, 213world’s attitude about benevolent
fairness, 223Canadian Culture 101, 46career change strategies, 135-136Carter, President Jimmy (speech),
194-201Cartwright, Edmund, 224Charles Schwab (company), 158Chennai
lack of reliable Internet access inhotels, 217
telecommunications infrastructure,1989 weaknesses, 24
Chicagowages
help desks, 44industrial wages lowered by
European immigration, 226workers, availability, 12
Chile, 90China
BPR, 18building infrastructure and services,
218clinical trials, 71computer programmer salaries
1989, 82004, 10
current telecommunications infrastructure, 24
Dell technical and customer supportoperations, 61
experience, 113illegal aliens, 212India symbolic relationships, 92investment in education, 214iPod not facing competition, 157IT offshore trends, 87keypunch operations, 38Linux operating systems, 94lower-paid knowledge workers, 168maintenance/enhancement work, 49outsourcing
author’s predictions, 191clinical trials, management/
administration, 70education and experience
levels, 54expansion, 90-94final corporate measures, 160from U.S., goal, 51IT jobs, 2knowledge-based work, 62knowledge-based workers, 166market research analysis, 77potential, 21satellite and Internet links, 6targeting all knowledge-based
industries, 154technology factors, 152U.S. attitudes, 223
potential economic upheaval, 97productivity, 17R&D centers built by U.S., 20relocating U.S. workers, 162salaries
affecting U.S. salaries, 191expectations of knowledge
workers, 9knowledge workers, 207
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233Index
software outsourcing, 93software
products developed, 58purchasing products, 59
source of low-cost products, 4Taiwan nuclear conflict, 96workers
education, 20quality of work, 12
Chryslerimplications of drop of market
share, 3owned by German company, 3physical location, research
analysts, 77Chute, La, 103CIA security risks, 210Citibank, offshore trends, 87Clark, Jim, 58Cleveland and outsourcing
help desks, 43locations of project managers/
teams, 56clinical trials,
management/administration, 69-71Clue Train Manifesto, The, 47COBOL, 126-127
programmers, 100shifts in hot technologies, 55
Colombia, 90Coming of the Post-Industrial
Society, The, 82commodity skills, 114-115Commodore PET, 127Computer Horizons BPR
Web site, 153Congress
Department of Energy proposal,199, 201
employment laws, 82
outsourcing legislation, 85backlash legislation, 95dealing with outsourcing, 104H-1B visas, 206H-1B visas, lobbies for
restrictions, 34passing laws against
outsourcing, 202presidential energy proposals,
194-195presidential speeches, 194speech by President Jimmy Carter,
199ConnectITChina, 93Cooney, David, 102core competencies, 169-171corporate strategies against
outsourcingbeing proactive, 154-155considering career change, 161-162finding specialized niches, 157-158quantifying cost-benefit value
proposition, 155-157relocating workers to offshore sites,
162-164relocating willingly, 159-160starting new businesses, 160-161working harder, 159
Costa Rica, 69court reporters, 63Covey, StephenCP/M, 127credit-card security, 26Crises of the Republic, 81critical infrastructure, 184CRM (Customer Relationship
Management) systems, 66, 73Cuba, 210Cutter Consortium, 84, 185
outsourcing
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affected workers, 178-179government policy
recommendations, 186IT, 174predicted success, 82-83
outsourcing surveyextent of outsourcing survey, 2-3,
8, 83-84, 107, 117individual proactive strategies,
118negative impacts, 106objectives of productivity and
quality, 8
Dan, Wang, 94data entry, outsourcing
automation, 62-63back-office operations, 77current status, 40-41early examples, 62individuals using Internet, 39keypunch operations, 35-37
current outsourcing status, 38-39lack of programming
outsourcing, 37-38outsourced by other knowledge-
based groups, 38work easily outsourced, 63-64physical locations
lack of importance, 51travel agents, 39
Datamation, 87Davis, Bob, 225DEC (Digital Equipment Corp.), 41Decline and Fall of the American
Programmer, 2, 6, 30, 85computer programmer salaries, 8predictions on outsourcing, 191premature dodo bird forecasts, 89
warnings about India, productivity, 24
Delhihigh-speed Internet connection, 216personal outsourcing, 101
Dell, Inc., 61market research analysis, 77outsourcing
offshore trends, 87technology factors, 152technical/customer support
operations, 61Deloitte Research, 110DeMarco, Tom, 219Department of Veteran Affairs, 127Derbyshire, England, 224Detroit
local offices for outsourcers, 157physical location, research analysts,
77DHL, 217Digital Equipment Corp. (DEC), 41Dilbert cartoons, 181
outsourcing trends, 146Domberger, Simon, 89Dubos, Rene, 103Dust-Bowl, 130
e-commerce, 26East Berlin, 25Eastern Europe and outsourcing
expansion, 90-92, 94H-1B visas, 206physical work locations, 11targeting all knowledge-based
industries, 154U.S. attitude currently, 25
economic environments, frictionless,11, 14
eBay, 58, 158
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EDS, 157education
finding work, 33giving workers competitive edge, 184global equalization, 190India, 201outsourcing
countering, 213-215partial solutions, 6preventing, 227
poll on important U.S. issues, 222Ellison, Larry, 51Emerson, Ralph Waldo, 165energy proposals speech, President
Jimmy Carter, 194-201England, 224
high-wage countries, 185medical training of foreigners, 70outsourcing
religious services/prayers, 79textile work to U.S., 224
salary expectations of knowledgeworkers, 9
versus New England, population andsalaries, 7
world’s attitude about benevolentfairness of advanced countries, 223
Ericsson, 58ethics of individuals, 136-140Ethiopia, clinical trials, 71Eudora, 123Europe and outsourcing, 191
See also Western EuropeEuropean Common Market, 217Excel, 57Expedia, 39
FAA (Federal AviationAdministration), Y2K securityrisks, 209
Fanning, Shawn, 28FBI security risks, 210FDA (Food and Drug
Administration), 69-70Federal Reserve, 188, 211
computer shutdown, 204Y2K security risks, 209
FedExe-commerce factor, 26part of traditional infrastructure, 217
Filofax, 124finance activities. See back-office
operationsFinnish Nokia, 58Fiorina, Carly, 183First Things First, 124Flint, Michigan, 87Florida
Nigerian scam ring, 73potential economic upheaval, 97
Food and Drug Administration(FDA), 69-70
Ford (company), 48implications of drop of
market share, 3operations all over world, 3physical location, research
analysts, 77Ford, Henry, 43Forrester Research, 87Forster, E.M., 33Fortran II, 127France
knowledge-based products and services, 90
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outsourcing of U.S. government programming, 210
protection of British inventions, 224freelancers, individual strategies,
132-134frictionless economic environments,
11, 14Friedman, Thomas, 91, 218
New York Times, 91
G.I. Bill, 184Gardner, John W, 145Gartner Group
China software outsourcing predictions, 93
IT offshore trends, 87outsourcing prediction, 110
Gates, BillChina concerns, 94non-Microsoft developed
software, 57outsourcing, factor in fortune, 51
Gateway, 77GE (General Electric), 45
instant help, 43IT offshore trends, 87outsourcing, 15
companies with experience, 177current attitudes, 56
six-Sigma quality initiative, 147General Mills
instant help, 43outsourcing, current attitudes, 56
General Motorsimplications of drop of market
share, 3instant help, 43operations all over world, 3outsourcing, current attitudes, 56
physical location, research analysts, 77
German Siemens, 58Germany
automobiles, 59high-wage countries, 185knowledge-based products and
services, 90outsourcing of U.S. government
programming, 210potential economic upheaval, 97relocation to outsourcers’
countries, 162versus U.S. use of energy, 196world’s attitude about benevolent
fairness of advanced countries, 223
Gettysburg Address, 194Gold Rush, 227Google, 47, 58, 123, 158
searches for political leaders’ contactinformation, 204
Gordon, GilGrapes of Wrath, 130Great Depression, 105, 130, 187Guangzhou, labor costs, 92Guatemala
illegal aliens, 212maintenance/enhancement work, 49
H-1B visas, 34, 206on-shore outsourcing, 5Asia, 206
Hammer, Michael, 18, 152Hard Ball’s Chris Matthews, 95Harley-Davidson®, 46-47
impact on foreign industry, 84Harvard
commodity skills, 115lectures on BPR, 153
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237Index
Hawthorne Effect, 109Health Insurance Portability and
Accountability Act (HIPAA), 72healthcare poll, U.S. issues, 222Hebert, Marc, 20Heichler, Elizabeth, 98help desks. See call centers/help desksHewlett-Packard. See HPHIPAA (Health Insurance Portability
and Accountability Act), 72Homeland Security Department, 210
poll on important U.S. issues, 223Honda automobiles, 48, 87, 155Hong Kong and outsourcing
labor costs, 92U.S. attitude in 1989, 25
House of Lords, 221HP (Hewlett-Packard), 94
computer sales and service, 41outsourcing
China Linux lab, 94corporate strategy, 158current attitudes, 56
hula hoop, 123Hungary and outsourcing
goal, from U.S., 51U.S. government programming, 210
Hyderabad, 217Hyundai automobiles, 155
IBMcomputer sales and service, 41interest in low-cost marketplace, 59introduction of PCs, 152market research analysis, 77no strikes by IT workers, 34outsourcing, 15
China labor costs, 92corporate strategy
concerning, 158
current attitudes, 56factor in leader’s fortune, 51offshore trends, 87
Palmisano, Sam (CEO), 98PCs, help desk expectations, 43systems engineers with mainframe
computer sales, 41IEEE, 34immigration, 212-213India, 216
BPR, 18call-center technicians’ product
knowledge level, 64China symbolic relationship, 92clinical trials, 71competition factors, 14computer programmer salaries
1989, 81989 versus 2004, 92004, 9
Dell technical and customer supportoperations, 61
growth of computer technology, 29H-1B visas, 206help desks, 48
cultural differences, 45offshore outsourcing, 44
insurance claim processing, 72investment in education, 214iPod not facing competition, 157IT offshore trends, 87-88keypunch operations, 38lack of high-quality telecommunica-
tions in 1970, 64lack of high-speed Internet access in
hotels, 217low labor costs, 90lower-paid knowledge workers, 168maintenance/enhancement work, 49outsourcing
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author’s predictions, 191clinical trials, 70companies with experience, 177current attitudes, 56dominance, 85education and experience levels,
54-55example, 90-91final corporate measures, 160IT jobs, 2knowledge-based work, 62maintenance/enhancement
work, 50market research analysis, 77Motorola, 22-23personal outsourcing, 102potential, 21primary source, 85processing IRS forms, 189quality and productivity, 51religious services/prayers, 79role of larders, 202satellite and Internet links, 6security and privacy issues, 211targeting all knowledge-based
industries, 154technology factors, 152U.S. attitude currently, 25U.S. attitude in 1989, 25U.S. attitudes, 223U.S. government
programming, 210U.S. role once played, 221
Pakistan nuclear conflict, 96physical work locations, 10political status in 1989, 25productivity, 13-14, 17purchasing software products, 59relocating workers, 162resources versus U.S., 14
salaries affecting U.S. salaries, 191software products developed, 58telecommunications infrastructure
current status, 24weaknesses in 1989, 24
workersavailability, 12education, 20quality of work, 12-13
Indiana, 10individuals, outsourcing implications
company variations, 111-112commodity skills, 114-115experience, 112-113flexibility, 115-116salary, 114
ethics, 136, 138-140isolated event, 110-111next generation, 140-143outsourcing temporary or permanent
threat, 105-109political protection, 111strategies, 116-117
career changes, 135-136freelance consultant, 132-134long work hours, 128-130niches, 125-128proactive, 118relocation, 130-132value added calculation, 119-125
Indonesia and outsourcing, 4disregard of nationality of
manufacturers, 189manufactured products, 169goal, 51
industrial union, British, 79inertia, 40, 155Information Technology Association
of America (ITAA), 86information technology. See IT
INDEX
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Infosys Technologies, 59California job creation, 101Shanghai office, 93
insourcing, 101, 167insurance claim processing, 71-72Integrated Technology Solutions at
Bellcore, 209Intel Corp., 91
building of R&D centers in Asiancountries, 20
market research analysis, 77technology, imagined need versus real
need, 152Internal Revenue Service. See IRSinterpreters, United Nations and
automation, 63iPod, 157Iran, 210Iraq, 96
terrorism, 192war’s importance to U.S. citizens,
223Ireland and offshore outsourcing
help desks, 44insurance claim processing, 72
IRS (Internal Revenue Service)back-office operations, 67corporate tax benefits, 161outsourcing
privacy issues, 203core competencies, 169
ISO-9000 certification, 16, 146-147, 156
Israeli war, 96IT jobs. See also programmers
lack of unions, 34-35offshore trends, 87-88percentage sent offshore, 174
ITAA (Information TechnologyAssociation of America), 34, 86
Ittycheria, Dev, 13Ivy League, 115
Jamaican keypunch operations, 38Japan
impact on automobile industry, 84imported automobile reaction, 87-88Linux operating systems, 94potential economic upheaval, 97product manufacturing sites, 206reading English, 93Sony, 58versus U.S. use of energy, 196
JavaChina concerns, 94outsourcing
education and experience levels, 55
help desk staffs, 46Jerusalem’s potential for attack, 96Jobs, Steve, 51Johnson, Maryfran, 91
K-Mart, 189. See also Wal-MartKernan, Governor Joe, 131Kerry, John, 104
election campaign speeches, 192proposals affecting workers and out-
sourcing, 185key process activities (KPAs), 23keypunch operations, 35-37
current outsourcing status, 38-39lack of programming outsourcing,
37-38outsourced by other knowledge-
based groups, 38replacement by individuals using
Internet, 39replacement by travel agents, 39
King, Julia, 87
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Klein, Dr. Lawrence, 86knowledge-based workers/services, 62
companies’ cost-cutting measures,150-153
outsourcing, 166-168affected workers, 178-179core competencies, 169-171debate over quality, 52-54initial pilot projects, 173-175learning from veterans, 177-178looming possibilities worrying
U.S. CEOs, 147measuring expectations with
SLAs, 175-177offshore trends, 88, 90productivity, 149proposals from outsourcing com-
pany, 146-147quality issue, 148-149reality, 147-148respect/honesty for workers being
displaced, 180-182unmanageable workers, 171-173workers competing for
jobs, 179-180strategies against outsourcing
corporations, 154-164individual workers, 154
Konopacki, Mike, 188Korea
competition factors, 14impact on automobile industry, 84product manufacturing sites, 206Samsung, 58
KPAs (key process activities), 23KPMG Consulting, China
labor costs, 92Kurande, Hemant, 13
laboratories, outsourcing back-officeoperations, 68-69
Lacy, Alan, 91Lay, Ken, 137Lebowitz. Fran, 33legal work, 78Libya, 210Lincoln, Abraham, 194Linux and outsourcing
ChinaHP lab, 94moving to, 94
education and experience levels, 55Logo programming language, 52London
British Treasury’s EnterpriseConference, 188
potential for attack, 96Lord Byron, 221, 225Los Angeles
costs of prestigious addresses, 159help desks, salaries, 44industrial wages lowered by
European immigration, 226intangibility of knowledge-based
work, 206Lotus Notes, 124Luddite machine wreckers, 221, 225Lynch, Ian, 94
m-commercecredit-card security, 27good roads/highways as factors, 26
Macaulay, Thomas Babington, 7Macintosh
help desk expectations, 43PowerBook, 58word processing, 57
Madraspersonal outsourcing, 101
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241Index
telecommunications infrastructure,1989 weaknesses, 24
Madrid bombings, 96maintenance/enhancement
work, 49-51management
individual outsource strategies, 116-117
carrier changes, 135-136freelance consultant, 132-134long work hours, 128-130niches, 125-128proactive, 118relocation, 130-132value added calculation, 119-125
manageability as outsourcing factor,21-24
Manhattan, 77costs of prestigious addresses, 159personal outsourcing, 101
Manila and outsourcingcall centers, 65core competencies, 169offshore tax preparers, 75salaries affecting U.S. salaries, 190personal outsourcing, 101
Mankiw, Greg, 187Maritime Provinces, 97Massachusetts General Hospital, 127MasterCard, 73
credit-risk analysis service, 149Matthews, Chris, 95MBA degrees
BPR awareness, 153commodity skills, 115education level for competitiveness,
54pilot-project experimentation
programs, 174
McDonald‘spersonal outsourcing, 102salary versus programmer’s in India
in 1989, 8workers safe from outsourcing, 62
McLees, Jim, 69McNealy, Scott, 94mean time to repair (MTTR), 176measurement/quality initiatives, 16medical analysis, 68Medicare, 222Merrill Lynch, 158Metropolitan Museum of Art, 227Mexico
disregard of nationality of manufac-turers, 189
illegal aliens, 212outsourcing
laboratories, 69maintenance/enhancement
work, 49U.S. attitudes, 223
quality versus price on products, 187source of low-cost products, 4
Microsoft Corp.China
move away from, 93Windows.NET lab, 94
interest in low-cost marketplace, 59no strikes by IT workers, 34non-Microsoft developed
software, 57offshore trends, 87outsourcing
corporate strategy, 158current attitudes, 56education and experience
levels, 55versus Indian programmers, 57
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technology, imagined need versus realneed, 152
building of R&D centers in Asiancountries, 20
Microsoft Officetechnology, 152
Microsoft Outlook, 123-125Microsoft Visual Basic, 46Microsoft Windows, 152Middle East
high-tech potential level, 27potential economic boom, 97war, 96
Mills, Darius Ogden, 227Minneapolis
insurance claim processing, 72personal outsourcing, 101
MITcommodity skills, 115lectures on BPR, 153OpenCourseWare, 215shifts in technical education, 52
Model-T Ford, 43, 158Morocco, 61mortgage/loan processing, 72-74Moscow and outsourcing, 119
fair treatment to outsourced worker, 180
IT offshore trends, 87salaries affecting U.S. salaries, 190U.S. attitude in 1989, 25
Motorola, 58, 162outsourcing, 15
in India, 23SEI-CMM award, 22-23
six-Sigma quality initiative, 147MTTR (mean time to repair), 176Mumbai, telecommunications
infrastructure
high-speed Internet connection, 216lack of reliable Internet access in
hotels, 2171989 weaknesses, 24
MUMPS, 127
Nader, Ralph, 95NAFTA (North American Free Trade
Agreement), 95, 189NASA (National Aeronautics and
Space Administration), 184NASSCOM (National Association of
Software and Service Companies),85-86
NATO’s lack of communicationsinfrastructure, 217
Nebraska and outsourcinghelp desks, 44problems from outsourcing, 203salaries, 44staff education level, 45
Netscape, 58, 123New Delhi and outsourcing
BPR, 18legal work, 78
New England, 7New Orleans, 158New York
credit-card security, 27help desks, 43-44insurance claim processing, 72intangibility of knowledge-based
work, 206potential for attack, 96telephone call from India
in 1989, 24worker availability, 12
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New York CityBotanical Gardens, 227industrial wages lowered by
European immigration, 226New York Times articles, 91
Bangalore’s airport, 218comments on education, 33Motorola’s Bangalore-based
division, 162Wipro IT outsourcing firm, 154Motorola and CMM award, 22
Newman, Paul, 171Nigerian scam ring, 73Nobel prize, 155Nokia, 58, 161North Africa, 27North America
advanced economies, 216clinical trials, 70education of Asian workers, 20entrepreneurial business culture, 25growth of computer technology, 29lack of awareness of Eastern-bloc
potential, 25marketing software products, 58outsourcing, 30
by satellite and Internet links, 6information-handling
services, 161offshore production
capabilities, 158post-dot-com recession as
factor, 27reviews of bank/credit-card
applications, 73role of leaders, 193to developing nations, 157trend analysis, 85
physical work locations, 11purchasing software products, 59
relocating U.S. workers, 162workers
availability, 20quality of work, 12
North American Free TradeAgreement. See NAFTA
North Koreaoutsourcing of U.S. government pro-
gramming, 210South Korea nuclear conflict, 96
nuclear conflicts, 96
OECD (Organization for Economic Cooperation andDevelopment), 214
offshore outsourcing, 2as business tactic, 79clinical trials, management/
administration, 69-71cost-reduction success, 82-83economic impact, 82factors
availability, 21-23lower-cost workers, 8-11manageability, 21-24political changes, 25-27post-dot-com recession, 27-31productivity and quality,
12-20, 30telecommunications
infrastructure, 24future, 226gain of familiarity and acceptance in
U.S., 10growth, 85impact on industries, 84issues of importance besides
outsourcing, 222-223looming possibilities worrying U.S.
CEOs, 147
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morale problems, 2-3not new phenomenon, 225-226objectives, 8other area targeted besides
IT industry, 4possible merits, 185possible solutions, 184-185predicted success, 82proposals from outsourcing
company, 146-147protectionist legislation, 205-208
government policy recommenda-tions, 5, 186
security and privacy issues, 209-212
reality, 147-148regarded with sense of inevitability, 5role of U.S. leaders, 192-205solutions not simple, 5survey, 2temporary or permanent threat,
105-109Wal-Mart Factor, 187-192
Omaha, 72Omaha Chamber of Commerce, 188OpenCourseWare, MIT, 215Oracle
databases, 54no strikes by IT workers, 34offshore trends, 87
Organization for EconomicCooperation and Development(OECD), 214
Orwell, George, 103Osama Bin Laden, 104
recipient of U.S. tax payers’ information, 75
outsourcing. See offshore outsourcing
PakistanIndia nuclear conflict, 96outsourcing of U.S. government
programming, 210political situation with India, 25
Palmisano, Sam, 19, 98Panama, 61Paris
credit-card security, 27potential for attack, 96
Pater, Walter, 33Pawtucket, Rhode Island, 224Peace Corps, 135pension funds, 167Perot, Ross, 95Peru’s outsourcing expansion, 90Philippines and outsourcing
clinical trials, management/administration, 70
companies with experience, 177expansion, 90from U.S., goal, 51IT jobs, 2knowledge-based work, 62market research analysis, 77U.S. attitude in 1989, 25
Piney, Thomas, 7PL/I, 127Pogo, 104, 220Poland
challenges of e-commerce, 26-27communications infrastructure, 217growing competitive force, 25-26outsourcing
from U.S., goal, 51of U.S. government
programming, 210technology factors, 152
political cartoon, 188
INDEX
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politicsbacklash, 95changes, outsourcing factor, 25-27outsourcing protection, 111
Porter, Eduardo, 86post-dot-com recession, 27-31Poughkeepsie. New York, 203Premji, Azim, 154privacy
issue for IRS outsourcing, 203offshore tax preparers, 75privacy laws, 72protectionist legislation, 209-212scrutinizing knowledge-based
work, 184productivity, 149
acceptance of new policies/procedures, 163
strategiesBPR, 152, 155corporate businesses, 158
employee value, 120estimating, 119experience, 112global equalization, 190Hawthorne Effect, 109higher salaries, 114improvements, 108
to remain competitive, 151machinery investments, 151maintenance/enhancement work, 50management leadership characteris-
tics, 145outsourcing
debate over quality and productivity, 53-54
education and experience levels, 54
measuring expectations withSLAs, 176-177
objectives, 8outsourcing factor, 12-20, 30outsourcing success, 83reasons, 175workers’ education and
experience, 54-57programming techniques, 38resistance to BPR measures, 163tax/accounting rule changes,
218-220workers competing for jobs, 179
professional societies and outsourcing, 34
programmers/programming. See alsoIT jobsfate of dodo birds, 85keypunch machines/
operations, 35-37maintenance/enhancement
work, 49-51outsourcing
help desk challenges, 46quality debate, 52-54shifts to outsourcing, 51-52workers’ education and
experience, 54-57protectionist legislation, 95, 97, 101,
163, 192, 205-208, 227foreigners in undergraduate or gradu-
ate college programs, 214prediction of success/failure of
policies, 188reducing outsourcing, 184security and privacy issues, 209-212
qualityauto industry, 4BPR strategies, 152, 155costs, 156
best price and quality, 148
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246
finding lowest-cost, highest-quality providers, 4
higher salaries, 114estimations, 119global equalization, 190importance of customer
relationships, 156India’s lack of telecommunications in
1970, 64management leadership characteris-
tics, 145market research analysis, 77newly regarded issue, 149outsourcing
advantages, 156debate over quality, 52-54disregard of nationality of manu-
facturers, 189education and experience levels,
54factors, 12-20, 30goal of outsourcing company, 150measuring expectations with
SLAs, 176-177objectives, 8pilot projects, 173quantifiable details from out-
sourcing company, 149reasons, 175successes, 84unmanageable tasks, 172workers’ education and experi-
ence, 54-57resistance to BPR measures, 163services support high-quality
products, 157six-Sigma quality initiative, 147software products developed, 58varying definition, 148
Wal-Mart, 187quality/measurement initiatives, 16
Radio Shack, 127, 187Randall, Henry Stephens, 7RCA, 130recessions as outsourcing factor, 27-31Red Queen Principle, 1Redmond. Washington’s outsourcing
problems, 203Reengineering the Corporation, 152Ribeiro, John, 87, 92Rise and Resurrection of the American
Programmer, 21risks
credit-card security, 27employee values, 120outsourcing, 148
credit-risk analysis service, 73,149
effects of, 163effects on individual rather than
corporate workers, 6employer outsourcing recommen-
dations, 117knowledge workers in advanced
countries, 11worker replacement, 16
re-hiring laid off employees, 106using cost-cutting measures
too late, 151Robb, DrewRochester, 157Romania as competitive force, 25Rongji, Premier Zhu, 92Roosevelt, Franklin Delano, 194Rotary Club, 47Round Rock, Texas, 61Rubin, Dr. Howard, 21
INDEX
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247Index
Russia. See also Soviet Unioncomputer programmer salaries after
Soviet Union fall, 8current telecommunications infra-
structure, 24growing competitive force, 25investment in education, 214IT offshore trends, 87oursourcing
call-centers, 64clinical trials, management/
administration, 70-71expansion, 90final corporate measures, 160from U.S., goal, 51IT jobs, 2knowledge-based work, 62U.S. government programming,
210salary expectations of knowledge
workers, 9Russian roulette, 110Rust-Bowl, 130
SABRE, 162salaries
help desk staff, 44outsourcing vulnerability, 114computer programmers
China, 1989, 8China, 2004, 10India, 1989, 8India, 2004, 9
knowledge workers, expectations, 9physical work locations, 10-11predictions concerning
outsourcing, 190-192U.S.
1989, 8
1989 versus 2004, 92000, 9
Samsung, 58Satyam, 93scam ring, 73Scheiber, Noam, 92SEC (Securities and Exchange
Commission)back-office operations, 67filings, 219outsourcing core competencies, 169
secretaries and automation, 62security, 185
credit cards, 26government clearances for vendors,
154issue for IRS outsourcing, 203job, 106maintenance/enhancement work, 50offshore tax preparers, 75poll on important U.S. issues, 223protectionist legislation, 209-212scrutinizing knowledge-based work,
184SEI-CMM award, 16
Motorola, 23SEI-CMM, level 5
Motorola, 162Seinfeld, 100September 11, 2001 attacks, 77, 96
disaster’s effect on federal govern-ment, 203
important U.S. issues, 223security risks, 210
Service Level Agreements (SLAs),175-177
Sex and the City, 46, 100Seychelles Islands, 97
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248
ShanghaiConnectITChina, 93English communication, 93Infosys Technologies office, 93physical work locations, 10purchasing software products, 59
Siemens, 58Sierra Atlantic Inc., 20Silicon Valley, 24, 125, 218Singapore, 90six-Sigma quality initiative, 16, 147SLAs (Service Level Agreements),
175-177Slater, Samuel, 224Slovakia, 61Social Security
goals for workers, 187poll on important U.S. issues, 222
Software Engineering Institute. SeeSEI
Sony, 58Walkman, 59
South Africa, 46South America
advanced economies in urban areas,216
growing competitive force, 25outsourcing
author’s predictions, 191market research analysis, 77
South KoreaLinux operating systems, 94North Korea nuclear conflict, 96
Soviet Union. See also Russiacomputer programmer salaries after
fall of Soviet Union, 8political status in 1989, 25
Spainnational elections, 96protection of British inventions, 224
Spears, Brittany, 95Sputnik, 184Stanford’s lectures on BPR, 153steel industry’s implications for
computer industry, 3Steinbeck, John, 130Stewart, Martha, 45, 137stickiness, 155
in location movement of knowledge-work, 11
stock market research analysis, 76-77strategies for individuals, 116-117
career changes, 135-136freelance consultant, 132-134long work hours, 128-130niches, 125-128proactive, 118relocation, 130-132value added calculation, 119-125
Strutt, Jedediah, 224Sun Microsystems, 94
no strikes by IT workers, 34Super Bowl, 45Suthan, Prathap, 201sweatshops, 104Sweden versus U.S. use of energy, 196Swedish Ericsson, 58sysadmin (systems administration),
physical locations, 50-51sysop (systems operator), 50-51
TaiwanChina nuclear conflict, 96competition factors, 14
INDEX
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249Index
economic incentives to attract U.S.companies, 20
outsourcingDell technical and customer sup-
port operations, 61manufactured products, 169product manufacturing sites, 206
Takahashi, Dean, 94Tata, 93Tatas, 59tax filing, 74-75tax/accounting rule changes, 218-220telecommunications infrastructure,
24-25Teoma, 123terrorism
Iraq, 192poll on important U.S. issues, 222potential disruptive factors, 96-97
textile industriesforeign industry impact, 84implications for fate of computer
industry, 3Thanksgiving, 45
call centers/help desks, 65Thibodeau, Patrick, 95
Computerworld, 87Thomson SA, 130-1313M, corporate outsourcing
strategy, 158Tokyo
credit-card security, 27potential for attack, 96
TORAW, 34Toyota, 48, 155Travelocity, 39, 67trends
call centers offshore, 87-88expansion to other countries, 90-94industry models, 98-100
IT services offshore, 87-88knowledge-based industries, 88-90potential disruptive factors, 94-95
economic upheavals, 97-98political backlash, 95terrorism, 96-97war, 96-97
twists, 100-101insourcing, 101personal outsourcing, 101-102
Triple-Whammy econometricforecasting model, 155
TRS-80, the IBM, 127Turn It Off, 129
Ulfelder, Steve, 91unions
employment protection, 106lack of for IT, 34rules supporting workers, 172
Unisys, 87United Nations, 27
interpreters, 63United States
Congresspresidential energy proposals,
194-195presidential speeches, 194
current telecommunications infrastructure, 24
emigration of Europeans, 225high-wage countries, 185medical training of foreigners, 70recipient of outsourcing of British
textile work, 224role of leaders concerning
outsourcing, 192-202top down or bottom up strategies,
202-205visiting knowledge workers, 213
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250
United States Postal Service, 217unmanageable workers, 171-173UPS (United Parcel Service)
e-commerce factor, 26part of traditional infrastructure, 217
Van Valen, Leigh, 1VB (Visual Basic), 55Visa credit cards, 73, 149VisiCalc, 57Visual Studio (Microsoft), 46
Wal-Mart, 100, 189, 222Wal-Mart Factor, 187-192, 207Walkman by Sony, 59Wall Street, 163
back-office operations, 77education and experience levels, 54insourcing, 167interests of senior management, 166outsourcing
back-office operations, 67insurance claim processing, 72market research analysis, 76-77pilot projects, 175reasons, 175
positive market assessments, 168reports to customers, 76
Wall Street Journalarticle on European emigration, 225outsourcing topic of coverage, 4
Warsaw and outsourcingoffshore tax preparers, 75proposals, 146U.S. attitude in 1989, 25
Washington, D.C.impact of speech by President Jimmy
Carter, 200outsourcing
actions of individuals, 204
citizens protesting outsourcing, 202
role of politicians, 191-192potential for attack, 96
Western Europeadvanced economies, 216education of Asian workers, 20growth of computer technology, 29knowledge-based products and
services, 90market research analysis, 77marketing/purchasing software
products, 58-59medical training of foreigners, 70outsourcing
information-handling services, 161
production capabilities, 158reviews bank/credit-card
applications, 73role of leaders concerning, 193to developing nations, 157trend analysis, 85
physical work locations, 11relocating U.S. workers, 162salary expectations of knowledge
workers, 9workers
availability, 20quality of work, 12
Wharton’s lectures on BPR, 153Windows, China’s move
away from, 93Windows.Net, China Microsoft
agreement, 94Wipro, IT outsourcing firm, 59, 154
company’s origin, 161WordStar, 127World Trade Center attacks, 96
INDEX
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251Index
Y2K, 30, 94, 205, 209maintenance/enhancement work, 50security risks, 209-210Senate committees, 209
Yahoo, 123
Zhongwen, Gou, 94Zone Technologies, 69
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