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EDS Moves More IT Jobs Overseas

In this article we see that the flagship company of billionaire Ross Perot (a strong advocate of keeping IT jobs in the USA) has decided to outsource IT jobs to India:

 

http://oracle.ittoolbox.com/news/dispnews.asp?i=126841

 

Electronic Data Systems will close 21 customer centers in the United States and Europe in the next two years as it moves software-development work to India and other countries.

 

Company officials indicated that the cutbacks are part of the 15,000 to 20,000 jobs they said last fall would be trimmed in 2005.

 

While the corporations say that they must reduce costs to remain competitive in a global market, there has been a backlash as offshoring has failed and jobs return to the USA.

 

http://www.silicon.com/management/careers/0,39024671,39119267,00.htm?nl=d20040318 

 

Gartner claims that 2004 will see the first major offshoring failure that will lead to a company taking its operations back onshore.

 

We are also seeing that the cost savings promised by offshoring are not as great as promised:

 

http://www.ccng.com/newsletter/newsletter_view.asp?newsid=256&Regionid=2

 

Citing problems such as cultural issues, unforeseen expenses, complex logistics, loose security, poor work quality and the subsequent decline in American employees' morale, about 55 percent of the polled companies' executives said they are considering "reshoring," or bringing the projects back to the Untied States.

 

However, that doesn't mean those companies desire to have all the projects done in-house. According to the study, 20 percent of the polled executives said they were "very likely" to "homeshore," or to outsource domestically.


 

 
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