Wednesday, March 08, 2006

IBM To Move All Solutions Development Operations To India

Reading Information week today I read that IBM Will Move All Solutions Development Operations To India. As a software developer, yikes. I know I don't work for IBM, so I'm safe and I don't even work much on the platform that they use, but this is still scary.

This whole offshoring thing is a giant snowball. There are a lot of major US companies that are spending a ton of money in India instead of in the US. That's bad for the US economy. The companies are saying it's better for their bottom line and investors, and they are probably right, but their employees are generally also investors, so as an investor it's better for them, but worse as an employee. I know I'd be pissed if I was told I was losing my job, but I shoudl be grateful, I'll be able to sell my stock for a 50 cent gain. The worst thing though is that as these companies spend more and more money in India, there will also be more turnover, which will essentially cycle through training more people. If there are more people trained, then there are more "skilled" employees for other companies to tap. This 200 million from IBM will save someone else 10 million of their own money in developing talent in India, the just have to tap it by offering a competitive salary by India's standards.

I like the idea of companies leveraging local talents from around the world to get a better feel for different regions and to be able to utilize different perspectives, but I don't like it when a company puts all their eggs in one basket, whether it's the US or India.