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Headcount: Offshoring, Dude!

Light Reading
News Analysis
Light Reading
11/20/2003
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Headcount is intrigued by strong hints that outsourcing -- or "offshoring," as the kids call it -- is more than just a temporary blip.

Case in point:

  • Tellabs Inc. (Nasdaq: TLAB; Frankfurt: BTLA) is outsourcing its international product manufacturing to Elcoteq Network Corp., a move that affects 300 jobs.

  • At least 1,000 jobs are being affected by Sprint Corp.'s (NYSE: FON) decision to move some applications development overseas, according to a report in the Kansas City Star. The outsourcing deals are old news, but now there's an inkling of how many jobs are cut (see Sprint Springs Outsourcing Deals).

  • AT&T Wireless Services Inc. (NYSE: AWE) is making plans to lay off more than 10 percent of its 30,000 workers over the next year as it farms out jobs overseas, according to a Wall Street Journal report.

  • Infosys Technologies Ltd., an outsourcing beneficiary based in India, is worth $1 billion more than its U.S. competitor Electronic Data Systems Corp. (EDS), even though EDS has about 121,000 more employees and more than 20 times the revenues.

  • Would it be wrong to bring up the Montreal Expos here? Why does a Canadian team play "America's pastime" so close to the equator for so much of the year?


Okay, Headcount will cease the outsourcing observations for now. Better yet, we'll hire a room full of wise-cracking columnists in Beijing to handle next week's column duties. And we're not giving them bathroom breaks, either. Until then, there are plenty of hirings and firings to ponder this week:

  • Maryland-based Sentito Networks is in the hunt for a VP of product marketing, according to sources close to the company. A job description handed to candidates reveals some interesting bits about the 85-person voice switch vendor. Privately held Sentito tells candidates it has landed 15 customers and trials with three RBOCs since releasing its product four months ago. Its revenues this year are projected to reach $3 million, climbing to between $80 million and $100 million in 2005, sources say.

  • Riverstone Networks Inc. (Nasdaq: RSTN) says Peter McGann, its executive VP of sales, has left the company after his job was made redundant. Regional VPs who once reported to McGann now report directly to Riverstone president and chief executive officer Oscar Rodriguez. Suresh Gopalakrishnan, formerly the executive VP of engineering, has also left the company this year, according Riverstone's filings with the Securities and Exchange Commission (SEC).

  • Components vendor Onetta Inc. confirms that its CEO, Orlando Reyes, has left the company. Until a replacement is found, his duties will be handled by founder and CTO Yan Sun and finance VP Allen R. Morton. Reyes took over for former CEO Dennis Barsema in January, according to Onetta founder and VP of product management Robert Macdonald (see Barsema to Leave Onetta).
  • Photuris Inc. has furloughed a number of its staff, putting them on unpaid leave while they retain employee status, chief operating officer Bill Gartner says. The metro WDM company has made sales to Verizon Communications Inc. (NYSE: VZ) and is in trials with two other RBOCs and an IXC. It has completed the third release of its product but has to make a tradeoff between future product development and conserving cash, Gartner says.
  • Sprint's annual Thanksgiving Day charity run begins at the company's Overland Park, Kan., headquarters at 9 a.m. on Nov. 27. The run is open to the public, and the first 3,700 entrants get a commemorative T-shirt. But if you send some funny or embarrassing photos from the event to [email protected] –- photos so good that we publish them -- we'll send give you a Light Reading T-shirt to add to your collection.

    And now here's a rundown of some other notable appointments (and disappointments) from the past few days: That's all for this edition of Headcount. We may be able to get in one more column before Headcount goes offshoring for the Thanksgiving holidays, so don't be shy about sending your tips to [email protected]. Gobble. Grobal.

    — Phil Harvey, Senior Editor, Light Reading

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    Page 1 / 189   >   >>
    basic2
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    basic2,
    User Rank: Light Beer
    12/5/2012 | 2:47:22 AM
    re: Headcount: Offshoring, Dude!
    "The US has lost close to 20 million jobs to China, India, Malasia,and Singapore. It did not happen by accident. It was the deliverate attempt of the corrupt CEOs who engaged in in-shoring and off-shoring activities with a single purpose of getting rich"

    Everyone is his own CEO. If you drive foreign made car, watch foreign made TV and/or wear foreign made cloth, how can you blame others to use foreign labor?
    startup_shutup
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    startup_shutup,
    User Rank: Light Beer
    12/5/2012 | 2:47:21 AM
    re: Headcount: Offshoring, Dude!
    >>Everyone is his own CEO. If you drive foreign >>made car, watch foreign made TV and/or wear >>foreign made cloth, how can you blame others to >>use foreign labor?

    Lets say that I buy your argument. Now can you
    justify obscene payout to a few people and
    cronies in corporate america? Let these jobs
    be offshored? Don't you understand "free market"
    is being used to advantage to a very few people.
    There is a massive flaw somewhere in "laissez
    faire" argument. Remember Enron and shady
    deals?

    Similarly, in startups how can you justify
    management shopping around IP
    which has been developed with labor
    of so many people. Who defines "remaining few"?
    How "layoff lists" are prepared? Free market
    forces at work you mean or plain kiss ass,
    promoting incompetance? Please give me a break
    -- never get fooled with free market/competitive
    argument.
    technonerd
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    technonerd,
    User Rank: Light Beer
    12/5/2012 | 2:47:20 AM
    re: Headcount: Offshoring, Dude!
    If you drive foreign made car, watch foreign made TV and/or wear foreign made cloth, how can you blame others to use foreign labor?
    Because in most cases, we have no choice in the matter.
    basic2
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    basic2,
    User Rank: Light Beer
    12/5/2012 | 2:47:20 AM
    re: Headcount: Offshoring, Dude!
    "If you drive foreign made car, watch foreign made TV and/or wear foreign made cloth, how can you blame others to use foreign labor?"

    "Because in most cases, we have no choice in the matter."

    Probably a CEO has no choice in this matter too. In current situation, unless something seriously changed, without outsourcing, how can a company compete with other companies who do outsourcing, their products or services will be much cheaper.
    technonerd
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    technonerd,
    User Rank: Light Beer
    12/5/2012 | 2:47:19 AM
    re: Headcount: Offshoring, Dude!
    Probably a CEO has no choice in this matter too.
    A CEO always has a choice in the matter. These people make so much money they ought to be able to stand up for a principle every now and then. On the other hand, to have even gotten to where they've gotten they undoubtedly had to abandon every principle so often they wouldn't know right from wrong if it slugged them in the stomach.
    PO
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    PO,
    User Rank: Light Beer
    12/5/2012 | 2:47:19 AM
    re: Headcount: Offshoring, Dude!
    If you drive foreign made car, watch foreign made TV and/or wear foreign made cloth, how can you blame others to use foreign labor?

    Because in most cases, we have no choice in the matter.

    What a loser. We all always have a choice. Just because we don't like the choice, it doesn't invalidate the choice we make.


    Levis are bad people. Anybody buying a new computer is good. Let alone the fact that the PC memories are ALL eurasian. And the motherboard was designed in eurasia. BULLSH*#. We've been down this road. GET OVER IT.

    Go for a walk. Let the thread die.
    startup_shutup
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    startup_shutup,
    User Rank: Light Beer
    12/5/2012 | 2:47:18 AM
    re: Headcount: Offshoring, Dude!
    This people know how to spot WRONG and capitalize
    on it. For example, in Enron's case Bank's gave
    loans to off balance sheet entities which are
    created by Enron. These off balance sheet entities
    in turn awarded "huge deals" to Enron inflating
    Enron's balance sheet.

    The operating principle is to DO WRONG as long as
    it is "NOT illegl". ETHICS DOES NOT MATTER.

    OVER NIGHT PROFIT MOSTLY CAN NOT BE MADE IN
    RIGHT WAY. FOLLOW WRONG WAY AS LONG AS IT IS
    BOT ILLEGAL.

    So correction:

    These people knows pretty well how to differentiate wron g=from right and use wrong
    way to their own proft. So much for "free
    market".
    OpticOm
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    OpticOm,
    User Rank: Light Beer
    12/5/2012 | 2:47:14 AM
    re: Headcount: Offshoring, Dude!
    You know, I ended up enjoying your posts, along Bobby's, even when you bash Atoga, lately...
    gardner
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    gardner,
    User Rank: Light Beer
    12/5/2012 | 2:47:09 AM
    re: Headcount: Offshoring, Dude!

    Actually, exchange rates are not in and of themselves a reason to invest (or not to invest) in US bonds.

    Clearly that depends on the exchange rate. People are in the market to make money. A weak dollar makes it hard to make money on any stock or bond that is denominated in dollars from the point of view of someone with, say Euros to invest. The bottom line is that we have to be careful in letting the dollar drop too far too fast. As a matter of fact, it is not really the exchange rate itself that matters, it is the time derivative. Whether there is 100y or 150yen to the dollar is not as important as how many yen it drops in a month. Like most economic questions I think the question of offshoring is about not letting things change too fast for people to adjust. The folks who argue for completely unfettered movement of jobs across borders don't understand that people have to have time to adjust to the changes. No one expects any country to always have an advantage in the same areas of economic activity but changes must happen at rates that can be adjusted to without undue suffering. The alternative is political instability and a distrust of markets by the man in the street who is seeing them as destructive to his wellbeing. Anyone who thinks that market economies have to be preserved must understand that only well-regulated markets can be preserved. When they are allowed to crash and boom with too much amplitude or with too great a frequency then people begin to distrust them. If only the sharpies and financial wizards can do well then they will soon be dethroned by hoards of people who have been hurt.
    gardner
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    gardner,
    User Rank: Light Beer
    12/5/2012 | 2:47:09 AM
    re: Headcount: Offshoring, Dude!

    Probably a CEO has no choice in this matter too. In current situation, unless something seriously changed, without outsourcing, how can a company compete with other companies who do outsourcing, their products or services will be much cheaper.


    This argument in favor of CEOs would be more credible if we heard them complain about offshoring but they heartily endorse it. They love it because it makes our country all the more "winner take all" and they are the winners. For the rest of us it sucks but you just keep voting Republican until the pain stops fool!
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