The theory of outsourcing and offshoring IT as it is practiced in the second decade of the 21st century comes down to combining two fundamental ideas: 1) that specialist firms, whether here or overseas, can provide quality IT services at lower cost by leveraging economies of scale, and; 2) that offshore labor markets can multiply that price advantage through labor arbitrage using cheaper yet just as talented foreign labor to supplant more expensive domestic workers who are in extremely short supply. While this may be true in the odd case, for the most part I believe it is a lie.
This lie is hurting both American workers and the ability of American enterprise to compete in […]
Back in April I wrote a six-part series of columns on troubles at IBM that was read by more than three million people. Months later I’m still getting ripples of response to those columns, which I followed with a couple updates. There is a very high level of pain in these responses that tells me I should do a better job of explaining the dynamics of the underlying issues not only for IBM but for IT in general in the USA. It comes down to class warfare.
A reader pointed out to me this week that the personal computer is well over 30 years old — a number that has real consequence if you are familiar with my work. He remembered I predicted in 1992 that PCs as we knew them would be dead by now. I was obviously a little off in my timing. But only a little off. PCs are still doomed and their end will come quicker than you think.
Last week Microsoft kinda-sorta announced its new Microsoft Surface tablet computer. This week will come a Google-branded tablet. Both are pitted against the mighty iPad. Both companies see opportunity because of what they perceive as a Steve Jobs blind spot. And both companies are introducing tablets under their own brands because they can’t their get OEM’s to do tablets correctly.
Microsoft’s Hollywood announcement Monday of its two Surface tablet computers was a tactical triumph but had no strategic value for the world’s largest software company because the event left too many questions unanswered. If I were to guess what was on Microsoft CEO Steve Ballmer’s mind it was simply to beat next week’s expected announcement of a Google brand tablet running Android. Microsoft, already playing catch-up to Apple’s iPad, did not want to be seen as following Google, too. So they held an event that was all style and no substance at all.