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OUTSOURCE: Competing in the Global Productivity Race

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OUTSOURCE: Competing in the Global Productivity Race


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  • Copyright 2005
  • Dimensions: 6x9
  • Pages: 272
  • Edition: 1st
  • Book
  • ISBN-10: 0-13-147571-1
  • ISBN-13: 978-0-13-147571-7

"In OUTSOURCE, Ed Yourdon conveys a nuanced understanding of a topic that too often has fallen victim to exaggeration and oversimplification. Will your job move offshore? That depends. Yourdon explains what it depends on, and what to do about it."

Robert D. Austin
Associate Professor, Harvard Business School

"Is outsourcing a bane, a boon, or a bother? Yes. Ed Yourdon takes on this vastly complicated issue and makes it all crystal clear."

Tom DeMarco
The Atlantic Systems Guild

"OUTSOURCE cuts through the outsourcing hysteria to present a balanced view of why outsourcing is occurring, how it is likely to impact people's lives, and how to best prepare career-wise for the new realities it introduces. Whether you are a buyer or provider of outsourcing services, or an individual whose career may be affected by those services, Ed Yourdon offers valuable insights that you can immediately put to use."

Ian Hayes
Industry Analyst and President, Clarity Consulting, Inc.

"Ed Yourdon's book on international outsourcing is a major work on an important topic. I think the book will become required reading for all CIOs and officers of U.S. companies that produce software in quantity. As usual with Ed's work, the research is extensive, and the coverage is thorough. Ed has visited many of the international outsourcing labs, so he also offers firsthand observations."

Capers Jones
Chief Scientist, Software Productivity Research LLC

"Ed Yourdon has produced a comprehensive sequel to his 1992 prophecy, Decline and Fall of the American Programmer. His views were much maligned; yet he turned out to be right. To cope with challenges ahead, this book should be required reading by computer professionals who wish to prosper in their jobs."

Paul A. Strassmann
A CIO for 43 years (General Foods, Kraft, Xerox,
Department of Defense, NASA)

"Entertaining and understandable, Yourdon's OUTSOURCE examines the current situation from sociological, economic, and historical perspectives, providing individuals, employers, and policymakers practical insights and advice centered on increasing competitiveness and taking individual responsibility. OUTSOURCE is must-read for those who intend to survive and thrive in this hyper-competitive global economy. It's just what the doctor should have ordered."

Leon A. Kappelman, Ph.D.
Farrington Professor of Information Systems
Director, Information Systems Research Center
College of Business, University of North Texas

"'Nothing personal, just business' has a new ring—and it's a dangerous wake-up call to a harsh side of globalization—a wake-up call that will change your life, your company, our future... Early readers of OUTSOURCE will have the advantage in the job shake-outs and company restructurings that are accelerating now!"

Mo Bjornestad
CEO, SensorWave Corporation

If you run a business, what should you outsource (and what shouldn't you)?

If you're a knowledge worker (inside or outside IT), how can you protect yourself?

How will outsourcing evolve next? What do those changes mean to you?

Outsourcing is not just the #1 issue facing IT organizations: It's driving a profound transformation throughout American business. Whether you're an executive or a knowledge worker, the decisions you make about outsourcing can make or break your future. This book brings together all the information and insight you need to make those decisions—and make them the right ones.

Once, outsourcing was largely limited to IT. Suddenly, it touches everyone from telemarketers to tax preparers, radiologists to market researchers. No American company or knowledge worker can ignore its challenge. Now, widely acclaimed author and consultant Ed Yourdon helps you understand the challenge of outsourcing—and meet it.

IT pros and knowledge workers: Protect your career

Eight realistic strategies for surviving the outsourcing revolution

How to compete with the entire low-cost world and win

Quantify, protect, and enhance your personal ñvalue propositionî

Executives: Make smarter outsourcing decisions

What to outsource, how to do it right, and when to avoid it

Outsourcing, the next generation: Beyond programmers

From telemarketers to accountants, clinical trials to market research

The politics and geopolitics of outsourcing

Backlash at home, upheaval overseas, and a plan for renewal

Along the way, Yourdon assesses the politics and economics of outsourcing, long-term implications for both suppliers and buyers of knowledge-based services, and much more.

Yourdon has been writing about outsourcing since before it had a name. In this book, he doesn't just predict your future, he helps you take control of it.

© Copyright Pearson Education. All rights reserved.

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Introduction to Outsourcing

Outsourcing: Likely Trends for the Next Decade

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Table of Contents

1. Introduction.

2. Key Factors Driving Outsourcing.


    The Influence of Lower-Cost Workers.

    Secondary Factors: Productivity and Quality.

    Additional Factors: Availability, Manageability, and So On.

    New Factor: Dramatic Improvements in Infrastructure.

    New Factor: Political Changes.

    New Factor: The Post-Dot-Com Recession.

3. Today’s Situation in It.


    Data Entry.

    Call Center/Help Desk.

    Maintenance/Enhancement Work and Infrastructure Admin Support.

    Traditional Software Development: Body Shop, Project, Full IT Department Replacement.

    Creation and Marketing of Software Products.

4. Additional Forms of Outsourcing.


     Data Entry: The Bottom of the Food Chain.

    Call-Center/Help-Desk Services.

    Back-Office Work.

    Clinical Trials.

    Insurance Claim Processing.

    Mortgage/Loan Applications.

    Tax Filing and Regulatory Filings.

    Financial/Market Research.

    Legal Work.

    Conclusion: What About Your Profession?

5. Likely Trends for the Next Decade


    Offshore IT and Call Centers Are Now Mainstream.

    Many Other Industries Are Where IT Was in the Mid-1990s.

    Work Is Expanding to Other Countries: China, Eastern Europe, and Others.

    Potential “External” Factors.

      Political Backlash.


      Economic Upheavals.

    Other Industries Provide Models.

    Possible Novel Twists on Outsourcing.

      Personal Outsourcing.

6. Implications for the Individual.


    Initial Caveats.

      Is Outsourcing a “Blip” or a “Sea Change”?

      It’s Unlikely to Be All-or-Nothing, Unless You’re in a One-Company Town.

      Political “Protection” Unlikely, at Least in the Short Term.

    Variations for the Individual.

      Age, Years of Experience.


      “Commodity” Nature of Skills/Profession.

      Flexibility: The Ability to Shift Quickly.


      Be Proactive.

      Quantify and Protect Your “Cost-Benefit” Value Proposition.

      Look for Innovative or Specialized Niches.

      Be Prepared to Work Harder.

      Be Prepared to Relocate.

      Consider Going Out on Your Own.

      Consider a Career Change.

    Ethical Issues.

    What Should You Tell Your Kids?

7. Implications for Companies Supplying Knowledge-Based Services.


    General Strategies.

    Revisiting the Strategies for Individuals.

      Be Proactive.

      Quantify Your “Cost-Benefit” Value Proposition.

      Look for Innovative or Specialized Niches.

      Be Prepared to Work Harder.

      Be Prepared to Relocate Geographically.

      Consider Starting Your Own Business.

      Consider Changing Careers.

    If You Can’t Beat Them, Join Them.

8. Implications for Companies Buying Knowledge-Based Products or Services.


    Traditional Outsourcing Issues.

      Don’t Outsource Core Competencies.

      Don’t Outsource What You Can’t Manage In-house.

      Start Small, with a Pilot Project.

      Measure Your Expectations with Service Level Agreements.

    Learn from Veterans.

    Peopleware Issues.

      Give Your Employees a Chance to Compete.

      Don’t Expect Employees to be Dupes.

      Treat Outsourced Employees Honestly and Fairly.

9. Implications for Government and Society.


    Objectives and Strategic Focus.

      The Wal-Mart Factor.

       What Role Should the Nation’s Leaders Play?

      Strategic Focus: Top Down or Bottom Up?


      A Non-Jobs Protectionist Issue: Security and Privacy.

    National Investment in What Makes Us Competitive.

      Encourage Immigration.

      Invest in Education.

      Invest in Infrastructure.

      Change Tax/Accounting Rules to Encourage Long-Term Investment in Workers and Productivity Improvement.


10. Conclusion.


    Other Issues Besides Offshore Outsourcing.

    America Itself Practiced Offshore Outsourcing of Knowledge-Based Products and Services.

    Outsourcing Is Not a New Phenomenon.

    Your Future Is in Your Hands.



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