Failures in Offshoring IT

Discussion in 'IT and Computer-Related Degrees' started by manjuap, Dec 28, 2003.

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  1. manjuap

    manjuap New Member

    http://www.washtech.org/wt/news/industry/display.php?ID_Content=4638

    See the billing rates below....


    What Two Outsourcers Bill the State of WashingtonThe following table outlines the rates at which Healthaxis Ltd. and Satyam are billing the Health Care Authority of Washington for various IT positions. The actual wages of Healthaxis or Satyam employees filling these positions is a percentage of the bill rate.

    Position Rate
    Project Manager $51.00
    System Analyst $40.00
    Lead Analyst/Programmer $38.00
    Data Architect $49.00
    Programmer $34.00
    Partner/Senior Executive $125.00
    Test Analyst $40.00
    Technician $33.00
    Trainer $36.00
    Documentation Specialist $36.50
    Source: "Composite Rate Structure", Exhibit A, Authorized Porduct and Price List as of March 18, 2002 for Contract No. 2040-000523 with Healthaxis, Ltd and the Washington State Health Care Authority.
     
  2. How sad, and how true...

    As a public administrator resposible for millions of dollars of investment in technology projects each year, I have so far resisted the temptation to push project work offshore, despite tremendous pressure from "corporate types" who have come into higher education management as CIOs, VPs of Finance, etc.

    I've also managed to keep my own job, and exceed performance expectations at a fraction of the cost and far more effectively than these offshore disasters.

    That's not to say there isn't value in outsourcing certain operations. There is. And that can't be denied and should not be. However, when strategic technology skills are handed over to offshore operations as if they were equivalent to textile workers on an assembly line, that is just plain wrong. There is an ethical issue at stake, and fortunately it is bolstered by the simple fact that having local talent is both cheaper and more effective than dealing with time zones, translations, "middlemen", and consultants.

    On the other hand, those rates quoted are about 1/3 of what we had to pay before Y2K for similar talent, US based consultants.

    Just my two cents worth....
     

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