We're outsourcing…but don't tell anyone!
September 22, 2008

In my work in helping companies to develop outsourcing strategies and roadmaps, and the one constant is we have to keep this quiet! When I ask "Why are you outsourcing" the most common answer is "for cost savings." What I tend to discover is that most companies want to grow bigger without growing fatter. Now Fatter is a term I use when you have to expand sites or manufacturing space to take on new work. Some companies really do need to just cut costs and outsourcing is only one phase of a series of cost-cutting measures. In either case the steps are really the same except at the end where you let employees go or reallocate those people and resources to a new product/project.

But the one typical discussion is almost always focused on secrecy of the outsourcing project. Now the really funny thing about telling folks to keep it a secret is that it makes them want to tell someone. This could be to gain some political advantage, because there friends will be effected or just because, but you can count on some leakage. For the most part the rumors will be much worse than reality, but because it affects them, they have to take the information seriously. Should you find yourself in a circumstance that requires secrecy, the fewer people who know the better.

Circumstances aside I almost always advise to just tell the truth and not make a big secret about activities. In-fact if you are trying to grow vertically not horizontally I would much rather include people in what is going on than not. With a decision to outsource overseas you will face some attrition, as some employees would rather work for someone not looking to outsource, but that is very normal. In all cases whoever is involved will divide into two camps, those for and those against. Those against will throw as many roadblocks in the way as possible, usually in the form of technical problems or my favorite "Only Jimmy Can do this" type of response. Those in favor of the outsourcing, will start beating the other guys to remove the roadblocks and before you know it you have firmly divided the office.

The final piece of advice I will give on outsourcing to the point of layoffs is, be prepared to do something for those employees who stick it out until the end. You should quickly identify those employees that you need and offer some type of compensation for ensuring the deal is closed timely and without many issues. ( In a perfect world where corporations are actually trying to keep employees this would be true.  However, in the real world, there are no rewards for the individuals who choose to stay until the bitter end.)

Good luck.

Developing a Telecommuting Policy Advisory by Dallas employment lawyer

September 17, 2008 (WiredPRNews.com - Law, Top Stories)

As gas prices climb, employee requests to telecommute rise as well. Dallas employment lawyer Keith Clouse advises employers contemplating a telecommuting policy to consider the following points.

In addition to environmental gains, telecommuting may benefit an employer in several ways. For example, an employer can hire the best job candidate, even if the candidate lives far from the office, and the employer may be able to retain key employees. Second, overhead costs may decrease, especially if employees share work space and office equipment. Labor costs may also be reduced if employees are willing to work for less pay in order to avoid long commutes. Finally, employee morale and motivation may increase.

But disadvantages do exist. Many employees are not ideal telecommuting candidates and many homes are not well-equipped for office work. Some managers question their ability to manage from a distance and office workers may undervalue telecommuters' contributions. Finally, not all work is conducive to telecommuting since some tasks require close interactions with others.

Advance preparation will help an employer create a successful telecommuting experience. First, the employer should choose the right employees—motivated, independent, and trustworthy "self-starters." An employer should then clearly define its expectations regarding tasks and the telecommuter's availability. Finally, an employer should maintain frequent communication with its telecommuting employees to foster productive relationships.

If you would like to discuss a telecommuting policy with a Dallas employment lawyer, contact the employment lawyers at Clouse Dunn Khoshbin LLP at info@cdklawyers.com.

New Study Shows Other Countries Are Closing in on US IT Industry

Political candidates and Congress urged not to take US leadership in information technology for granted

Last update: 2:00 a.m. EDT Sept. 16, 2008

WASHINGTON, Sep 16, 2008 (BUSINESS WIRE) -- A new study reveals a tightening international competition for providing the most competitive conditions for the information technology (IT) industry.

The United States continues to rank first in the world in the annual IT industry competitiveness index, which was written by the Economist Intelligence Unit, the business information arm of The Economist Group, and sponsored by the Business Software Alliance (BSA). But while the United States places in the top five in all six index categories, its overall score was just 74.6 out of a possible 100, down about three points from its 2007 score of 77.4. Moreover, Taiwan, Sweden and Denmark have moved into the top five and they are quickly closing in on the United States as the most competitive market. The study, now in its second year, assesses and compares the information technology (IT) industry environments of 66 economies to determine the extent to which they enable IT sector competitiveness. The top ten in the 2008 study are the US, Taiwan, United Kingdom, Sweden, Denmark, Canada, Australia, South Korea, Singapore, and the Netherlands. (For those of you that are interested India ranked 48th down from 2007 at 46th.) 

Although the top 20 economies remain the same from one year ago, nine moved up and 11 moved down in the rankings. Taiwan, ranked sixth in 2007, leaped to second-place in 2008 thanks to improved performance in research and development (R&D). Other big gains were in Denmark, up from eighth to fifth place, thanks to a stronger business environment, investments in IT infrastructure, and improvements in human capital; Canada, up from ninth to sixth place; and Singapore, up from 11th to ninth place.

Robert Holleyman, president and CEO of BSA, welcomed the report and the attention to competitiveness around the world, but urged policymakers to guard against indifference and complacency.

"This year's Index shows that IT competitiveness rankings can change very quickly," Holleyman said. "The gap between the US and other nations is narrowing as many economies are becoming more competitive and nipping at our heels. Strong leadership and sound policies will be needed for the US to remain the innovation leader."

"A strong tech industry is crucial to America's ability to address almost every economic and social challenge," Holleyman added. "The tech sector remains one of the primary engines of the US and global economy. This index provides a guide to how we can keep that engine running smoothly to ensure innovation and progress in the future."

Six Key Competitiveness Enablers

According to the Economist Intelligence Unit, six factors combine to create a sound environment for the IT sector, including an ample supply of high-skilled workers; an innovation-friendly culture; world-class technology infrastructure; a robust legal regime that protects intellectual property such as patents and copyrights; an open, competitive economy; and government leadership that strikes the right balance between promoting technology and allowing market forces to work. Those economies that perform well in these six "competitiveness enablers" generally are home to high-performance IT industries, which contribute more than 5% to the gross domestic product of many advanced nations.

According to the study, the United States combines breadth and depth in the six competitiveness categories, with special strengths in the quality of its legal regime, business environment, and university graduates. However, the report also highlights areas where US global leadership could come under threat, including:

-- Infrastructure: Broadband penetration is well below that of many countries in Western Europe and East Asia. Large firms generally enjoy high levels of reliable, secure connectivity, but in some parts of the country, smaller IT firms and individual entrepreneurs--often the crucible of technology innovation--require better access to high-speed networks.

-- Workforce: US technology firms, like those elsewhere in the world, are experiencing shortages of skilled talent and will be adversely affected by slower increases in the number of science and engineering graduates from domestic institutions. Easing or at least avoiding further tightening of immigration restrictions on skilled workers would help US competitiveness.

-- Openness: With the US economy in a period of slow growth, US policymakers must resist intensified political pressure to restrict access to the domestic market and educational institutions.

-- R&D Environment: Asia boasts the strongest R&D environments. Dynamic innovation, supported by a strong R&D environment, has contributed to that region's IT industry competitiveness. Conversely, the US lags far behind in resources provided for R&D in IT, scoring 23.7 compared to Taiwan's score of 74.3. The US score dropped by more than 40% from last year's score of 39.8.

Other key findings of the research include the following:

-- Investing in people is mission-critical for domestic IT industries. Sourcing talent will be among the toughest challenges IT producers will face in the coming years.

-- Competitive broadband markets help cultivate strong IT sectors. Without fast, reliable and secure Internet access, technology firms cannot interact effectively with their partners and the research community, nor can they sell their services online.

-- A legal environment that protects intellectual property rights (IPR) and takes a robust approach to cyber security is essential. The US, Australia and Western European countries have the most effective systems in place to address IPR protection and cyber security, but gradual improvements are also evident in other nations.

-- East Asia boasts the strongest R&D environments. Dynamic innovation, supported by a strong R&D environment, is a major contributor to IT industry competitiveness.

International partnerships and the Internet will promote R&D. Global IT "ecosystems," online or otherwise, that bring together talent, technology, venture capital, and good universities, supported by a risk-taking ethos, will be the best incubators of innovation.

Chart: Top 20 countries in IT competitiveness:
Country              Score           2008            2007
                                     rank            rank
USA                  74.6            1               1
 Taiwan               69.2            2               6
UK                   67.2            3               4
Sweden               66.0            4               7
Denmark              65.2            5               8
 Canada               64.4            6               9
Australia            64.1            7               5
South Korea          64.1            8               3
Singapore            63.4            9               11
 Netherlands          62.7            10              12
Switzerland          62.3            11              10
Japan                62.2            12              2
Finland              61.5            13              13
 Norway               59.7            14              14
Ireland              59.4            15              15
Israel               56.7            16              20
New Zealand          56.6            17              17
 Austria              56.1            18              19
Germany              55.4            19              16
France               54.3            20              18

Source: How technology sectors grow: Benchmarking IT industry competitiveness 2008, is available free of charge at www.eiu.com/sponsor/BSA/technologysectors or www.bsa.org/globalindex.

About the Business Software Alliance

The Business Software Alliance ( www.bsa.org) is the foremost organization dedicated to promoting a safe and legal digital world. BSA is the voice of the world's commercial software industry and its hardware partners before governments and in the international marketplace. Its members represent one of the fastest growing industries in the world. BSA programs foster technology innovation through education and policy initiatives that promote copyright protection, cyber security, trade and e-commerce.

About the Economist Intelligence Unit

The Economist Intelligence Unit is the business information arm of The Economist Group, publisher of The Economist. Through our global network of over 650 analysts, we continuously assess and forecast political, economic and business conditions in 200 countries. As the world's leading provider of country intelligence, we help executives make better business decisions by providing timely, reliable and impartial analysis on worldwide market trends and business strategies.

SOURCE: Business Software Alliance (BSA)

Business Software Alliance 
Americas: 
Amos Snead, +1-202-715-1531 
or 
Robert Jameson, +1-202-715-1535 
or 
media@bsa.org 
or 
Economist Intelligence Unit 
 Joanne McKenna, +44 (0)20 7576 8188 
joannemckenna@eiu.com 
or 
Denis McCauley, +44 (0)20 7576 8237 
denismccauley@eiu.com
 

Copyright Business Wire 2008

Asian employers warm up to telecommuting?

By Billy Teo, ZDNet Asia
Tuesday, September 16, 2008 05:50 PM

Oil prices stalking the US$100-per-barrel neighborhood have raised transport costs for workers. Add to that, companies are encountering higher rent. To save costs, employers might therefore be pressured to adopt telecommuting.

Adam Bowden from the IT Commerce Specialist Recruitment Division of recruitment firm Robert Walters, thinks not.

"We are not seeing much direction towards telecommuting at the present time," he told ZDNet Asia.

The biggest concerns for Asian companies, Bowden noted, are additional costs, security and, in particular, productivity.

Said the senior consultant: "The big question will always be asked: How productive will an employee be, working remotely?"

But another Robert Walters senior consultant covering the banking industry, Sohrab Singh, was more optimistic that employers would allow employees to work away from the office.

"It is a relatively new concept in Asia, hence both the employer and the employee will need to be educated on the benefits and pitfalls," he told ZDNet Asia.

"The basic change will need to come in the way the employee's productivity is measured, wherein it will have to be based on setting targets, deliverables and timelines rather than the number of hours spent at work."

A recent survey conducted by IDC and commissioned by Avaya, revealed 81 percent of executives polled across the Asia-Pacific region agreed or strongly agreed telecommuting improves productivity. In 2005, only 61 percent thought so.

The increased positive perception of telecommuting--as a way to improve productivity--was most obvious among respondents in Hong Kong, Australia and India.

It is striking that respondents in China (76 percent) and Singapore (78 percent) viewed telecommuting as a means of improving the work-life balance among their employees.

Way of life
For some multi-national companies operating in Asia, telecommuting is a way of life.

At Cisco Singapore, 40 per cent of the staff are mobile workers without a permanent workstation in the office.

Tom Cheong, Cisco's managing director for Singapore and Brunei, told ZDNet Asia: "Globally, 85 percent of our staff spend time each week working from home, with 24 percent of their work time spent in their homes. This is consistent with both Singapore and the Asia-Pacific region."

Companies like Cisco and Sun Microsystems provide all the necessary equipment and services for their telecommuting staff.

Gan Boon San, president of Sun Microsystems, South Asia, told ZDNet Asia: "For 10 years now, we have an Open Work Program that provides our employees with secure access to their e-mail from home or on the road. On top of that, we provide access to everything. You name it: e-mail, calendar, address book, expense reporting and benefits management."

There are signs that even the small and midsize businesses (SMB) are taking up telecommuting.

Lendl Chong, sales director of telecommunications services company Qala, said that a quarter of his company's business comes from providing telecommuting-related infrastructure and services for SMBs in Singapore.

He said: "The demand has been increasing over the years. It will soon be a norm for people and companies to adopt the concept of telecommuting in the near future. As it is now, employees are already able to work anywhere, as long there's a computer and a phone."

Mobile workforce
It appears Asian companies are embracing the concept of mobile workers who don't necessarily have to be in the office at all.

WAN application delivery and secure Web gateway products provider Blue Coat recently concluded an online survey with 1,100 businesses in the Asia-Pacific region.

The survey explored topics that include the globalization of enterprises and the consolidation of data centres--as well as the mobilization of work forces.

Managing director P.K. Lim of Blue Coat Systems South Asia and Australia/NZ, said: "Interestingly, 77 percent of respondents have at least a quarter of their workforce being mobile, and 86.9 percent of these mobile professionals depend on the network to access their information."

Shalini Verma, research manager for communications research at IDC Asia-Pacific, believes talent shortages will make Asia more receptive to telecommuting--although not as enthusiastically as in the United States.

"In many markets, the shortage of skills will force enterprises to provide more flexibility to employees, and hence will encourage telecommuting. Also, the challenges of daily commute and the high cost of office real estate, will force enterprises to encourage telecommuting," Verma told ZDNet Asia.

Gan from Sun Microsystems said: "Another benefit of our Open Work program is that it enhances our ability to attract and retain the best talent available. In fact, our Open Work platform is one of the top reasons that 85 percent of our mobile workers say they would recommend Sun to external people."

Cisco's Cheong thinks that Asian employers will eventually warm up to telecommuting regardless of transport costs or office rentals.

"Many organizations in Asia perhaps do not have the same culture [as Cisco], but this is going to change over time, especially as the Gen Ys and the Millennials (born from 1991 onwards) enter the workforce and assume management positions."

Billy Teo is a freelance IT writer based in Singapore.

Virtual teamwork on the rise

Staff

September 12, 2008

With more telecommuting, global work forces and rising travel costs, more than two-thirds - 67 per cent - of employers expect to rely more on "virtual teams" in the future, a new survey finds.

The benefits: 75 per cent of the 278 respondents said such teams facilitate information-sharing, 70 per cent said they encourage diverse thinking, and 62 per cent said they result in higher productivity and facilitate cross-training, according to the survey from the Institute for Corporate Productivity (i4cp).

The detriments: they are too difficult to manage, according to 35 per cent, and problematic to co-ordinate schedules, according to 31 per cent. As well, 31 per cent felt their company's technology tools are inadequate for holding virtual team meetings.

Can you compete in the global market place?

Five outsourcing websites: You too can telecommute.

Outsourcing often gets a bad rap, but if your business needs to build a new website or have a brochure designed, for instance, and lacks the expertise in-house, outsourcing your project at home or abroad is often the most viable and cost-effective solution.

So where can you find qualified contractors to complete your projects? Thanks to the internet, it's never been easier to not only locate talented contractors but to get them competing for your business.

Here are five websites that help businesses find contracts to outsource their projects to.

• ELance
  One of the original outsourcing websites, I've hired a number of web developers and graphic designers using eLance. ELance allows you to post your project, receive bids from contractors, offers a system for managing projects and also provides a payments service with an escrow option.
  
   
• ScriptLance
  With a focus on web-oriented projects, I've observed that ScriptLance tends to be a hub for lower dollar value "gigs."
  
   
• oDesk
  When outsourcing on an hourly rate payment schedule, there is always concern that a contractor won't put in the time her or she is supposed to put in. oDesk takes a novel approach and keeps track of the time contractors are putting in. It can even take screenshots every 10 minutes so that you can see what your contractors are doing.
  
   
• Guru
  Guru bills itself as "the world's largest online service marketplace" and works in a fashion similar to ELance.
  
   
• RentACoder
  Like ScriptLance, RentACoder is primarily oriented to web projects, as its name implies. It claims over 220,000 "registered coders."

Having successfully used some of the services above, here are a few tips:

• Spec out your requests in as great a detail as possible. Even if you're not capable of describing what you need in technical terms, take the time to explain what you need in depth. If you don't, expect delays, additional costs and poor results.
  
   
• Set sensible milestones. Quite honestly, outsourcing can be crapshoot - especially when working with a new contractor. You have to be prepared for complications. Thus, give thought to milestones so that you can get a project back on track (or cancel it) early if it goes astray.
  
  
• Communication is key. If you have a hard time communicating with a contractor during the sales phase, you're probably going to have a hard time communicating with them during the project phase.
  
   
• Look local. Certain types of projects are almost always best completed locally. If you have a complex or long-term project, give some real thought to selecting a local contractor that you can meet with in person.
  
  
• You usually get what you pay for. Even if you decide to outsource your project to a country in which contractors charge far less, be weary of quotes that seem too good to be true. They usually are.
  
   
• Look closely at portfolios, read feedback, request references and ask questions. Treat the hiring of a contractor the same as you would the hiring of an employee. Do your due diligence!