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| By Barney Beal,
SearchCIO.com News Writer 27 Oct 2003 | SearchCIO.com
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The
"big sucking sound" of manufacturing jobs headed
south to Mexico may not have been as loud as Ross
Perot warned, but there's definitely a noise coming
from India.
New York City software testing firm has developed
an answer to that rush of offshore outsourcing.
Real-Time Technology Solutions, Inc. announced earlier
this month its Onshore Automated Testing service.
The service provides low-cost software testing that
is competitive with offshore firms but without the
quality, communication and cultural concerns, said
Bill Hayduk, director of professional services.
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| "We're
not going to match offshore dollar for dollar but
we felt we could get close enough," Hayduk said.
"Right now, the most important thing for clients
is competitive prices." In
a report earlier this month, analyst firm Gartner
Inc. advised that companies should consider more
than cost when looking at their outsourcing options.
Gartner also recommended looking closely at U.S.-based
labor for IT work. |
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Hayduk said many
of his company's Fortune 500 clients have been getting
the message to cut costs from their C level management.
Offshore outsourcing has been one of the most popular
measures. Taking a proactive approach, RTTS elected
to offer competitive pricing with its excess capacity.
"It's a heck of a lot better to have people working
at a low rate than sitting around doing nothing,"
Hayduk said. The onshore model still provides the
capability to have a person on site, or RTTS can
have its staff in New York analyze results and report
defects over the Internet and ship code. Hayduk
said RTTS has found there is a fundamental difference
of opinion within organizations about outsourcing.
The C level executives see the low cost, and that's
all they're concerned about. |
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| "The process
might be tight, but the work quality is horrible,"
Hayduk said about offshore providers. "When they
ship code they don't know how to code it, but because
they're charging $20 an hour, they're getting the
work. On a project level and at the VP level they
know this." |
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| Organizations
can be broken down into three groups when it comes
to outsourcing, Hayduk said: those that just want
the lowest price available, those that want to reduce
costs but keep the work on site, and those who will
pay a premium for high quality work. Additionally,
there are some industries where offshore outsourcing
isn't an option, such as federal government work;
state government where it may be an option but a
political problem; brokerage firms with sensitive
data; and pharmaceuticals, which have complicated
regulatory requirements. With the onshore model,
RTTS is positioned to serve them all, Hayduk said. |
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RTTS has begun
by offering this service to existing clients. Should
the economy pick up, the use of excess capacity
will continue to provide a competitive advantage
while bringing in new clients, Hayduk said. "Outsourcing
is not going to walk away. We have the space, the
labs, the equipment and the high speed connections.
It's a great thing for us," Hayduk said.
"Companies are not going to go back to the boom
of late 90s. It makes total sense." |
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