Why Companies move software development offshore
Doug
This link provides an excellent example of why companies move IT
work offshore -- it's all about $$$ of course.
Some excerpts:
Unisys Squeezes A 3Q Profit From Efficiencies
Unisys Corp.'s push to improve processes and move software development
offshore paid off in the third quarter of fiscal 2002 despite a
slowdown in sales. The maker of hardware, software, and services is
reporting sharply increased profit on slightly lower revenue for the
quarter ended Sept. 30, compared with the same period last year.
Unisys' profits were $59 million for the quarter, almost three times
the $20.9 million the company reported a year ago. Revenue, however,
was down to $1.3 billion from $1.4 billion a year ago. Spending on
outsourcing(particularly business-process and transaction-processing
outsourcing), managed-network services, and security continues to be
strong...
Unisys cut expenses in several areas for the quarter, including $7
million from its research and development budget, down from $73
million to $66 million. Weinbach says his company was able to do this
by improving overall efficiencies and by moving more of its software
development to offshore locations. Unisys' U.S.-based revenue was $619
million, up 3% from the $599 million reported a year ago.
InsuranceBroker
>From: doug07...@yahoo.com (Doug)
>Date: 10/16/2002 9:11 AM Eastern Daylight Time
>Message-id: <764d609e.0210...@posting.google.com>
>
>This link provides an excellent example of why companies move IT
>work offshore -- it's all about $$$ of course.
>
Unisys is the survivor of the Burrough and Sperry Corporation. It was and
still is mostly a company that lives off of government contracts. When they
tell you how wonderful the cost saving happen to be they ignore the cost of
lost of work and tax revenues in the United States. Another case of your tax
dollars building a Better India.
..............................copied..........
Key contracts with the U.S. Transportation Security Administration and the
commonwealth of Pennsylvania strengthened Unisys' revenue for the quarter and
have the potential to deliver revenue for several quarters to come.
........
Amazing that they would ship our security work to an area of the world were it
is the lease secure. Only an American goverment would disregard its own people
for a couple bucks.
Doing Insurance business in the Garden State
alexy
Sounds like a company in decline. Rising profits on falling revenues
seldom appeals to investors. Getting those profits through such cost
savings as reduced R&D and outsourcing will not (and has not, based on
price history) fool the market. Might be the best way to milk any
possible profits out of a declining company, but not much future in
it.
--
Alex
Make the obvious change in the return address to reply by email.
Flavius Vespasianus
news:764d609e.0210...@posting.google.com:
> http://story.news.yahoo.com/news?tmpl=story2&u=/cmp/20021014/tc_cmp/iwk
> 20021014s0004&e=1
>
> This link provides an excellent example of why companies move IT
> work offshore -- it's all about $$$ of course.
Now ask yourself this question.....
What would Unisys had done of the Federal Government, using your tax
dollars, had not paid for the high-speed data links to these offshore
locations?
Jerry Leslie
: doug07...@yahoo.com (Doug) wrote in
I believe you, but do you have a cite for that government subsidy ?
My google searches return too many hits, although I did find some
interesting information on undersea fiber optic cables:
http://www.speakeasy.org/wfp/48/envirowatch.html
Envirowatch - #48 Nov/Dec 00
"...Fiber-optic Cable Threatens Marine Life
Eleven transatlantic and seven trans-Pacific submarine fiber-optic
cable projects are now under way in U.S. waters, and they threaten
marine life, according to Marine Conservation News, published by the
Center for Marine Conservation. One of the projects was approved for
the Olympic Coast National Marine Sanctuary, off the Washington coast.
To lay the cables, a massive seaplow digs a trench, creating a
20-foot-wide zone of disturbances. Laying the cable crushes
bottom-dwelling creatures and disturbs sediment, smothering marine
life. The article said there is growing pressure to lay cables in
national marine sanctuary waters, despite regulations that prohibit
damage to the seabed within the sanctuaries..."
http://www.asiaweek.com/asiaweek/98/0417/cs1.html
Asiaweek.com
"Asiaweek Agenda -- Technology
THE WORLD ON A WIRE
New cable, satellite and wireless networks will pour huge volumes
of video, sound and data into Asia -- and change the lives of Asians
By Jim Erickson / Hong Kong
IN DECEMBER A SHIP appropriately named the Long Line is to leave the
California beach community of San Luis Obispo, for China. In its hold,
coiled around massive drums, will be 6,000 km of fiber-optic
telecommunications cable. Over the next 12 months, as the Long Line
and sister ships operated by Alcatel Submarine Networks crawl at about
4 knots across the Pacific, the crew will methodically unspool the
cargo and pay it into the ocean.
The black, steel-jacketed cable, barely larger in diameter than a
thumb, will leave hardly a ripple as it breaks the surface and slides
to the ocean floor. But when the trans-Pacific circuit between China
and the United States is completed late next year, it will unleash an
unprecedented tsunami of digital information -- phone calls, video,
sound, data, business transactions, and Internet content yet
unimagined -- sloshing between the Asian and the North American
continents.
The small businessman in Delhi whose phone call was just disconnected
or the Internet surfer in Beijing impatiently downloading a Mickey
Mouse graphic may not mark the historic moment, but the Tera Era is
about to dawn in Asia. That's when the volume of electronic data, be
it voice, fax, audio or video, that can be transmitted over global
networks will no longer be measured in millions (mega) or billions
(giga) of digital bits-per-second, but in trillions (tera). The Long
Line is part of a flotilla of cable-ships that over the next few years
will be criss-crossing Asian waters, laying enough cable to jack the
region into a global communications grid which is currently undergoing
an explosive expansion in capacity and speed -- or, as the industry
calls it, "bandwidth."
The $1.2-billion China-U.S. Cable Network project, the first direct
fiber-optic link between the two countries, follows a recently opened
project called FLAG, a 28,000-km cable from Japan to Britain (see map
page 50). Another billion-dollar proposal, the Sea-Me-We3 submarine
cable, will connect Europe and Asia via the Indian Ocean in 1999.
Already, every Asian country with a seacoast, including Myanmar,
Vietnam and tiny Brunei, are hooked to pipes large enough to leave
them awash in data. And more cable project proposals are seeking
investors.
"There are so many trawlers laying fiber across the ocean, I'm
surprised there hasn't been a collision," says Dudley Howe, director
of Internet Solutions Development for Digital Equipment Corp..."
http://www.networkmagazine.com/article/NMG20000515S0067
Global Watch: All-You-Can-Eat Bandwidth?
by Robert Kirby
Network Magazine
11/01/99, 3:00 a.m. ET
In the game Hungry Hungry Hippos, plastic hippopotamuses gobble up
anything put before them. At game's end, the best fed of the pack
emerges victorious, while the rest get by on the little left them, an
outcome not unfamiliar to international ISPs competing with incumbent
telecoms.
However, major investments in fiber optic cable, especially submarine,
should change that. With new fiber, and the optimization of that fiber
through technologies such as Dense Wave Division Multiplexing
(DWDM),underdog ISPs may get more of a fighting chance. Competitive
success will rely less on a stranglehold of resources than on the
delivery of improved services to new and existing Internet users. The
result should be lower prices, even as once-underserved subscribers
enjoy newfound broadband access.
Transatlantic submarine cable systems seem to raise the bar with each
new project announced. In August 1999, Global Crossing doubled the
service capacity of its Atlantic Crossing 1 network to 80Gbits/sec,
with plans for an upgrade to 140Gbits/sec by March 2000. The
160Gbit/sec FLAG Atlantic-1 cable, anticipating operability by fall
2000, boasts a data rate of 1.28Tbits/sec at full capacity.
With the heaviest volume of overseas data traffic traveling between
North America and Europe, these cables should alleviate congestion and
enable smaller ISPs to go head-to-head with giants like British
Telecom and Deutsche Telekom on their own soil. Newly contracted land
pipes also abound, which can mean only good things for Europe.
The Asia-Pacific region will experience a healthy influx of bandwidth
in the near future. France Telecom's SEA ME WE 3, scheduled for
operation in November 1999, will offer 40Gbits/sec across its
extensive run from the United Kingdom to Japan via the Red Sea, the
Middle East, and the Indian Ocean. In addition, several transpacific
cable projects are under way for late 1999 and 2000, including three
80Gbit/sec projects to connect China, Japan, and the United States.
Southern Cross, a link between New Zealand, Australia, and the United
States that will operate at 40Gbits/sec by the end of 1999,
illustrates the drive of shareholders Telecom New Zealand, MCI
WorldCom, and Optus Communications to extract themselves from the
stranglehold that Telstra (Australia's dominant carrier) has on leased
lines. They've chosen to join forces and invest in their own cable
rather than continue payments to their chief rival.
And if that weren't enough, a network to Asia, proposed for 2002,
anticipates capacity for 640Gbits/sec. To put things in perspective,
even the smallest of the new projects dwarfs the combined 9Gbit/sec
cable and satellite transmission capacity that spanned the Pacific in
December 1995..."
Thanks in advance,
--Jerry Leslie (my opinions are strictly my own)
Note: les...@jrlvax.houston.rr.com is invalid for email
Thus Spake Zarathustra
Tim Keating
posing with a fake ID of "Thus Spake Zarathustra"
<niet...@large.com> wrote:
>Companies obviously move offshore to get away from Tim Keating.
Poor little JJ.. feeling a little oppressed today?
I noticed you still don't have the guts to post under your real name
! tsk...tsk..
Thus Spake Zarathustra
news:os23rusicql754kt9...@4ax.com...
> On Sat, 19 Oct 2002 11:18:05 -0500, "John Jacobson" <Joh...@xnet.com>
> posing with a fake ID of "Thus Spake Zarathustra"
> <niet...@large.com> wrote:
>
> >Companies obviously move offshore to get away from Tim Keating.
>
> Poor little JJ.. feeling a little oppressed today?
Oppressed? Why should I feel oppressed? I find your comic analyses to be
quite entertaining. However, I was referring to the fact that smart firms
leave the United States because they can then be assured that they will not
accidentally hire you.