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    Outsourced IT probably hurt Delta Airlines when their power went out

Outsourced IT probably hurt Delta Airlines when their power went out

DELTA_WING_UP_PFDelta Airlines last night suffered a major power outage at its data center in Atlanta that led to a systemwide shutdown of its computer network, stranding airliners and canceling flights all over the world. You already know that. What you may not know, however, is the likely role in the crisis of IT outsourcing and offshoring.

Whatever the cause of the Delta Airlines power outage, data center recovery pretty much follows the same routine I used 30 years ago when I had a PDP-8 minicomputer living in my basement and heating my house. First you crawl around and find the power shut-off and turn off the power. I know there is no […]

By |August 8th, 2016|2016, Companies, Computing, Outsourcing, Privacy and Security|111 Comments
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Who is your IT outsourcing firm working for?

outsourcing-for-dummiesWhile the U.S. Government has been remarkably opaque about the recently discovered security breach at the Office of Personnel Management (OPM), we know that personal information on at least 21.5 million present, former, and prospective federal employees was lost. The Feds claim Chinese hackers are at the bottom of it, which is disputed by the Chinese government. This, to me, raises a number of questions, especially about the possible role of IT outsourcing firms and implications for organizations beyond OPM. Does IT outsourcing make your data more vulnerable? Yes, I believe it does.

It’s easy to blame the Office of Personnel Management for its own troubles. Oversight was lax. The agency failed a security audit and […]

By |July 30th, 2015|2015, Government, Outsourcing, Privacy and Security, Uncategorized|127 Comments
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The H-1B visa program is a scam

h1b visas by companyThis is the second of three columns relating to the recent story of Disney replacing 250 IT workers with foreign workers holding H-1B visas. Over the years I have written many columns about outsourcing (here) and the H-1B visa program in particular (here). Not wanting to just cover again that old material, this column looks at an important misconception that underlies the whole H-1B problem, then gives the unique view of a longtime reader of this column who has H-1B program experience.

First the misconception as laid out in a blog post shared with me by a reader. This blogger maintains that we […]

By |June 15th, 2015|2015, competition, Education, Government, Outsourcing|173 Comments
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Some thoughts on how a Grinch stole Target’s Christmas

targetThere was a time when “activist investor” Carl Icahn actually owned and ran businesses, one of which was TransWorld Airlines (TWA), eventually sold to American Airlines. In an attempt to cut costs, TWA under Icahn outsourced reservation service to a call center built in a prison with prisoners on the phone. When you called to book travel you were giving your credit card number to a felon and telling him when you’d be away from home. Smart move, Carl, and very akin to what may have caused the post-Thanksgiving theft of 40 million credit card numbers from Target, the U.S. discount retailer.

Target used to do its IT all in the USA, then to save costs […]

By |December 20th, 2013|2013, Companies, Internet, Social Media|71 Comments
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More stupid IBM tricks put customer data at risk

I heard from dozens of readers this morning about a message IBM sent to its current employees concerning their 401K plan — changing it from a contribution in every paycheck to a single contribution at the end of the year. Of course if you are laid off that means no annual contribution, less retirement savings, but a real bonus to the company. This, in itself, isn’t worth a column. It’s just Scrooge IBM being more Scrooge-like in search of that 2015 earnings target. What is worth a column is putting this news in the context of IBM having failed its recent internal security audit, which should concern IBM customers.

What, they didn’t tell you?

How well is […]

By |December 5th, 2012|2012, Breaking News, Business, Companies, Computing, Industry, Internet, Outsourcing, Software|62 Comments
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