Gartner: Backlash against offshoring to vanish by 2006

[Renew Deal]

Analyst calls outsourcing 'irreversible megatrend' but says impact has yet to be realized

By David Legard, IDG News Service June 15, 2004

The backlash against offshoring will deepen over the next few months, but will be consigned to the wastebasket of history by the end of 2005, according to Craig Baty, group vice president, Global Tech Industries Group, Gartner Inc.

"Global sourcing (of IT services) is an irreversible megatrend although its true impact is yet to be felt," he said during the 3rd Regional Infocomm Conference here. "By 2006, we will see a reliable global sourcing market."

The current backlash against IT offshoring in countries such as the U.S. and Australia -- based on the notion that offshoring causes IT job loss -- is misguided, according to Baty.

"The idea that jobs will be lost through offshoring is the most emotional topic of outsourcing," he said. "But it is in fact an insignificant issue that will go away."
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http://www.infoworld.com/article/04/06/15/HNoffhorebacklash_1.html

[the Kelly Gang]

1. were do these analysts live..in a cocoon ?

"based on the notion that offshoring causes IT job loss -- is misguided, according to Baty." ??????????????????
:crazy: :silly: :shrug:

[Robert Oak]

2. many of these articles are propaganda, released by PR firms

Many articles on outsourcing, which right now they are trying
to change the name to competitive sourcing to hide what's going on,
are really press releases put out by public relations firms
representing multinationals. We are deluged by misinformation
regarding outsourcing and this is clearly one....

They have tried to say one can't stop this or this issue will be a non-issue or Americans will accept it...pure propaganda.

But what this does show is multinationals would rather spend millions and millions in PR firm costs than bother to support Americans
with jobs.

It would be nice to find a study of total costs spent firing Americans and then trying to cover up this new "business practice" versus
what the actual costs are in terms of just keeping Americans employed.

[fedsron2us]

3. Irreversible Megatrend ?

I seem to have heard that phrase before about just about anything you could care to mention from patterns of morbidity to stock prices. How these analysts get paid so much money for identifying an existing trend and then drawing a line on a graph to infinity just beggars belief. An eight year old child could do the same. The current fashion for outsourcing is no more inevitable than any other business fad in the last 30 years. I can think of a number of scenarios including war, political revolution, a collapse in the value of the dollar and the advent of peak oil production which could blow the global trading system to pieces.