X-Shoring: eating a mid-level IT role near you soon
02/07/2010
Perhaps this one should be filed in the 'shouldn't be that surprised' department: a larger proportion of software services will be supported offshore this year, according to a poll of 200 UK IT directors by Spanish IT consultancy group Valueshore.

Fuente:  www.cbronline.com    Fecha: 

et you thought that means cheaper coe cutting? Nope. This study suggests the next part of the IT ecosystem that will start being vulnerable to export is support - not just for simple applications but the core enterprise business platforms, Oracle and SAP.

The study suggests 62% of UK IT directors already offshore software development or plan to do so, but it also found 50% will prioritise the offshoring of maintenance for packaged software going forward.

The data also suggests other areas of business IT CIOs are starting to think perfectly applicable to remote handling are some aspects of infrastructure management, identified by 43% as a good target, business process outsourcing (BPO) (31%) and BI (16%).

Perhaps the fact is that we are used to the ideas of offshoring and indeed now multi-shoring with China, Brazil and parts of Sub-Saharan Africa now bobbing up as successful destinations in addition to our friends in India - though the sub-continent remains very much a player, with news this week alone that the firm that provides ICT to firms like Pret a Manger and Tie Rack, systems integrator 2e2, will also move the equivalent of 150 support jobs there starting this month.

But by and large, apart from some aspects of BPO - arguably - it's been LOC not 'how do I merge the sales databases for these two offices?' we've been looking for from offshore.

That is going to change and the new-style public sector the coalition government is determined to create will be a driver (you may be able to get rid of 600,000 public sector jobs but you can't really fire that many nurses and social workers - you purge numbers in the back office, patently).

Indeed, in May analyst group TechMarketView predicted names like TCS, Infosys, Cognizant, Wipro, HCL and Mahindra Satyam are likely to become much more familiar names to central government IT workers in the next few months than the usual suspects of IBM, EDS/HP and the like. In the same month, a study by PwC estimated £4bn could be saved per annum by both outsourcing and offshoring central government HR, finance and procurement functions.

So this data does seem to plug into a wider framework where what may have been a naturally evolving business trend (multishoring) will get a significant boost as the UK public sector - which has traditionally been averse to nuking too many UK civil service jobs - turns to x-shoring with the radical zeal of a true convert.

At the same time, the private sector seems to be more determined than ever to squeeze cost out even further - hopefully to make good on the recovery (which is slowly but surely on its way - the double-dip recession seems off the radar, thank goodness).

But there is a clear warning here for low-level ICT job-holders in the UK. Mate - if they can offshore it, they will. Start making sure you do something they really can't that easily... but don't hold your breath.

One day, they will.