Sending jobs offshore will generate even more angst next year

As I have previously observed, 2004 won’t be much different from 2003 in terms of the trends that dominate the technology landscape. In this column, I offer my outlook on offshore outsourcing, on-demand computing, Web services and the impact of Wi-Fi in the coming year.

Offshore outsourcing has generated the most angst among IT workers and a rift with management. Next year the rift will be even more pronounced as enterprises continue to look for lower cost IT services. I predict that the relentless focus on lowering costs through offshore outsourcing will come back to haunt companies in 2004.

For solving short-term issues or dealing with a specific development project or customer service application, the outsourcing route is a no-brainer, given the outsourcing partner can meet predefined goals for the relationship. But too many companies chasing cost savings will outsource functions that are better managed internally. The result will be small and big disasters — outsourcing gone wrong. The obvious way to avoid disaster is to test, benchmark, and monitor the outsourcing partner’s performance.

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