This presentation covers information on Outsourcing, its impact on graduating students and what skills they could develop to help them get the job they want. Presented to graduating seniors at Santa Clara University in May 2004.

1. Outsourcing: It’s impact on
Graduating Seniors in Computing
byby
Sejal MehtaSejal Mehta

2. Agenda
 Outsourcing – Overview / backgroundOutsourcing – Overview / background
 Challenges in Outsourcing JobsChallenges in Outsourcing Jobs
 Jobs that cannot be outsourcedJobs that cannot be outsourced
 Jobs of the futureJobs of the future
 Skills requiredSkills required
 Trends / expectations in the next couple of yearsTrends / expectations in the next couple of years

3. Outsourcing - Overview
““To send out (work, for example) to an outside provider orTo send out (work, for example) to an outside provider or
manufacturer in order to cut costs.”manufacturer in order to cut costs.”
The American Heritage® Dictionary of the English Language, Fourth EditionThe American Heritage® Dictionary of the English Language, Fourth Edition
““Paying another company to provide services which aPaying another company to provide services which a
company might otherwise have employed its own staff tocompany might otherwise have employed its own staff to
perform, e.g. software development.”perform, e.g. software development.”
The Free On-line Dictionary of Computing, © 1993-2003 Denis HoweThe Free On-line Dictionary of Computing, © 1993-2003 Denis Howe

4. Outsourcing – Overview (contd.)
 OutsourcingOutsourcing
 Offshore Outsourcing / OffshoringOffshore Outsourcing / Offshoring
 GlobalizationGlobalization

5. Outsourcing – Quotes
“Should I Stay or Should I Go? | Apr 19 '04
Sending jobs offshore to countries like India seemed like a sure bet. Now, some firms are having
second thoughts.”
“Losing Control | Mar 15 '04
A woman in Pakistan recently struck fear among IT executives who outsource. She had obtained
sensitive patient documents from the University of California, San Francisco, Medical Center through a
medical transcription subcontractor that she worked for, and she threatened to post the files on the
Internet unless she was paid more money.”
“Impact of jobs moving offshore may be dent in economy | Nov 12 '03
“San JOSE, Calif. – With the American economy finally gathering steam but job growth still uncertain,
The transfer of U.S. tech and service jobs out of the country has become a hot-button issue.”
“Ban Outsourcing? Bad Idea | Mar 29 '04
The uproar in the U.S. over the outsourcing of jobs to India is deafening. On Mar. 5, California state
Senator Joseph Dunn greeted an application for a tax exemption by Infosys Technologies Ltd., India's
premier software-services company, with an accusation that such companies “want to steal jobs” and
“taxpayer dollars.”

6. Outsourcing - Background
 Cost SavingCost Saving
 Cheap laborCheap labor
 Skilled laborSkilled labor
 Current EconomicCurrent Economic
SituationSituation
 Blue Collar jobs toBlue Collar jobs to
White Collar jobsWhite Collar jobs

7. Outsourcing - Challenges
 CommunicationCommunication
 Time differenceTime difference
 Physical distancePhysical distance
 Productivity / EfficiencyProductivity / Efficiency
 QualityQuality
 Cultural differencesCultural differences
 Man power retentionMan power retention
 Language barriersLanguage barriers

8. Jobs that cannot be outsourced
 Local knowledge, local laws etc.Local knowledge, local laws etc.
 In-person presence / customer interactionIn-person presence / customer interaction
 Proprietary knowledgeProprietary knowledge
 Service-oriented jobsService-oriented jobs

9. Jobs of the Future
 Software / System ArchitectsSoftware / System Architects
 Technology Experts and ResearchersTechnology Experts and Researchers
 Business IntelligenceBusiness Intelligence
 TrainingTraining
 Curriculum DevelopmentCurriculum Development

10. Skills required
 Communication skillsCommunication skills
 Project Engineering skillsProject Engineering skills
 Project Management skillsProject Management skills
 Leadership / decision making skillsLeadership / decision making skills
 New Technology SavvyNew Technology Savvy
 Cultural awarenessCultural awareness

11. What should you do?
 Mix-and-Match vs. specific skillsMix-and-Match vs. specific skills
 Collaboration tools knowledgeCollaboration tools knowledge
 Co-development skillsCo-development skills
 Knowledge of Foreign languagesKnowledge of Foreign languages
 Understand the bigger pictureUnderstand the bigger picture

12. Trends / expectations in the next
couple of years
 Clearer pictureClearer picture
 Routine / Maintenance jobs will be outsourcedRoutine / Maintenance jobs will be outsourced
 Maintenance of mature productsMaintenance of mature products
 TestingTesting
 Bug fixingBug fixing
 Advanced development work will stayAdvanced development work will stay

13. Q&A