Click here to close now.

Welcome!

Web 2.0 Authors: Pat Romanski, Jacob Olcott, Elizabeth White, Robin Kent, Joe Pruitt

Related Topics: Microservices Journal, Java, Linux

Microservices Journal: Article

Outsourcing "Has Been Going On Forever" - Intel's CEO

Outsourcing "Has Been Going On Forever" - Intel's CEO

Related Links:
  • Saturday Essay: Why Outsourcing is a "Tremendous Opportunity" for US Economy
  • Intel Goes From Hard Core to Dual Core
  • "We've Had Some Fumbles," Says Intel's Otellini
  • Offshore Outsourcing: Magic Bullet or Dirty Word?
  • 1 in 4 IT Jobs Going Offshore, Says Gartner; One Major "Offshoring Failure" in 2004 Predicted
  • IT Trends: "Intelligent Computing" is Greater Threat than Outsourcing

    "'The world is always ready to receive talent with open arms.' That's really what outsourcing is," said Intel's CEO Craig Barrett recently in an interview with the San Francisco Chronicle. He was quoting a fortune cookie slogan which he feels sums up the whole issue very neatly.

    Globalization has played its part. "The world's economy in the last 10 years has opened up," said Barrett, "and you've had a seminal event, of half the world's population joining the world's free economic system almost overnight, in the 1990s."

    Like Intel, Barrett explains, "many companies are finding the bulk of their revenue comes outside the U.S., and you have to have resources outside the U.S. to support that." He adds that Intel, for about the last two decades, has had about 40 percent of its employees outside the United States.

    Asked what the US can do to counter the consquences of globalization in terms of job losses to overseas, Barrett listed four calls to action. The education system is first and foremost, he said: "we need to fix the K-12 education system and have a higher influx of kids into college in the technical areas."

    The second one is research and development, "because R&D is the seed corn for products and services of the future," said Barrett.

    Spending on infrastructure is crucial too, he said - meaning not bridges or roads but communications infrastructure, information technology infrastructure:

    "You know that the United States is a laggard in broadband. We're kind of a third-world country from a wireless standpoint."

    The last thing is what Barrett called "the Hippocratic oath of 'Do no harm,' but not applying to doctors, applying to governments."

    California, he said, is "a wonderful example of where government rules, regulations and policies are not only restrictive, but detrimental, in driving business away. Other countries are aggressively pursuing investment, much more than the United States."

    Asked what advice he would give to his successor as CEO of Intel, Barrett, who is due to retire next year, said:

    "I will tell my successor: 'Make sure you have a passion for the technology and the business, and make sure you try to translate that passion to your employees and the company as a whole.'

    People do a good job when they love what they do. They do a good job when they really enjoy and believe in what they do. So, I would make sure that my successor has those characteristics. I would also tell my successor that you make sure that you work hard and play hard. Balance your personal life with your professional life, but do both at 200 miles an hour."

    Barrett became Intel's fourth president in 1997 and CEO in 1998. He is set to retire in May.

     Related Links:

  • Saturday Essay: Why Outsourcing is a "Tremendous Opportunity" for US Economy
  • Intel Goes From Hard Core to Dual Core
  • "We've Had Some Fumbles," Says Intel's Otellini
  • Offshore Outsourcing: Magic Bullet or Dirty Word?
  • 1 in 4 IT Jobs Going Offshore, Says Gartner; One Major "Offshoring Failure" in 2004 Predicted
  • IT Trends: "Intelligent Computing" is Greater Threat than Outsourcing
  • More Stories By Jeremy Geelan

    Jeremy Geelan is Chairman & CEO of the 21st Century Internet Group, Inc. and an Executive Academy Member of the International Academy of Digital Arts & Sciences. Formerly he was President & COO at Cloud Expo, Inc. and Conference Chair of the worldwide Cloud Expo series. He appears regularly at conferences and trade shows, speaking to technology audiences across six continents. You can follow him on twitter: @jg21.

    Comments (2) View Comments

    Share your thoughts on this story.

    Add your comment
    You must be signed in to add a comment. Sign-in | Register

    In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


    Most Recent Comments
    an00n 09/28/04 10:21:15 AM EDT

    Outsourcing means taking money out of the American economy (wages that would be paid to someone getting taxed and buying stuff over here), and sends it overseas where that money (generated with the assistence of US-taxpayer funded US infrastructure, and taxpayer funder corporate tax breaks) now instead helps a competitor to America. That's not a good thing.

    The free trade of high paying AMerican jobs for cheap overseas labor also would not naturally end until some natural balance in global salary levels has been achieved... Now, when you realize that the US *currently* has one of the highest salary levels in the world, but only represents ~5% of the global population, you'll begin to realize where that eventual equilibrium may be achieved... it won't be the midway point between current US and Indian/Chinese/Russian salaries, but rather it'll be much closer to what those Indian etc salaries are right now, since their population sizes swamp our own.

    Now, if you actually give a crap about quality of life over here, and your ability to earn a wage that'll pay an American mortage rather than paying for a Chinese apartment (not much use unless you live in China), then you'd be concerned about this, but don't go looking for enlightened CEO's to stop gunning for expense-cutting bonuses in this way, especially since there duty to shareholders is to maximize profits for them, regardless of anythign else (such as whether by doing so they're screwing the American economy, and screwing the job prospects of their shareholders and everyone else).

    The only thing that will stop the quality of life in America being dragged down to what'll be supported on an Indian salary is indeed, as Kerry says, to have the government provide disincentives to do so... What I'd support is tax penalties that are proportional to the difference in cost of living between the US and where a company outsources to, since that levels the playing field. I'll happily compete with anyone in the US for a programming job, since I'm good at what I do, and my competitors have pretty much the same cost of living as myself... but trying to compete with someone on the same skill level who's cost of living is 20% of mine is going to be a losing proposition since they can work for 20% of the salary that I need. That's not competition, it's slaughter, and it may be good for globally reducing labor rates to a minimum (if that for some reason is your goal), but it's sure not good for the Americal lifestyle that we enjoy, even if you want to roll out the old excuse that I'll be able to buy a VCR at Walmart for $28.99 instead of $32, because of the Chinese labor.

    I'd be voting for Kerry anyway based on the danger to America that Bush represents, but I certainly also support him on this issue - his policy will be good for working Americans, while Bush's outsourcing-happy policy is only good for the independently wealthy and business owners to which lower US labor costs are a plus rather than a negative.

    Mark 09/27/04 01:03:30 PM EDT

    Wow. And this guy is a CEO? How long has it been since he has been in the trenches?

    The problem is not Outsourcing. It is the type of Outsourcing - Offshoring.

    @ThingsExpo Stories
    SYS-CON Events announced today that Ciqada will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Ciqada™ makes it easy to connect your products to the Internet. By integrating key components - hardware, servers, dashboards, and mobile apps - into an easy-to-use, configurable system, your products can quickly and securely join the internet of things. With remote monitoring, control, and alert messaging capability, you will meet your customers' needs of tomorrow - today! Ciqada. Let your products take flight. For more inform...
    SYS-CON Events announced today that GENBAND, a leading developer of real time communications software solutions, has been named “Silver Sponsor” of SYS-CON's WebRTC Summit, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. The GENBAND team will be on hand to demonstrate their newest product, Kandy. Kandy is a communications Platform-as-a-Service (PaaS) that enables companies to seamlessly integrate more human communications into their Web and mobile applications - creating more engaging experiences for their customers and boosting collaboration and productiv...
    SYS-CON Events announced today that BroadSoft, the leading global provider of Unified Communications and Collaboration (UCC) services to operators worldwide, has been named “Gold Sponsor” of SYS-CON's WebRTC Summit, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. BroadSoft is the leading provider of software and services that enable mobile, fixed-line and cable service providers to offer Unified Communications over their Internet Protocol networks. The Company’s core communications platform enables the delivery of a range of enterprise and consumer calling...
    VoxImplant has announced full WebRTC support in the newest versions of its Android SDK and iOS SDK. The updated SDKs, which enable audio and video calls on mobile devices, are now compatible with the WebRTC standard to allow any mobile app to communicate with WebRTC-enabled browsers, including Google Chrome, Mozilla Firefox, Opera, and, when available, Microsoft Spartan. The WebRTC-updated SDKs represent VoxImplant's continued leadership in simplifying the development of real-time communications (RTC) services for app developers. VoxImplant (built by Zingaya, the real-time communication servi...
    The IoT Bootcamp is coming to Cloud Expo | @ThingsExpo on June 9-10 at the Javits Center in New York. Instructor. Registration is now available at http://iotbootcamp.sys-con.com/ Instructor Janakiram MSV previously taught the famously successful Multi-Cloud Bootcamp at Cloud Expo | @ThingsExpo in November in Santa Clara. Now he is expanding the focus to Janakiram is the founder and CTO of Get Cloud Ready Consulting, a niche Cloud Migration and Cloud Operations firm that recently got acquired by Aditi Technologies. He is a Microsoft Regional Director for Hyderabad, India, and one of the f...
    SYS-CON Events announced today that Optimal Design, an Internet of Things solution provider, will exhibit at SYS-CON's Internet of @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Optimal Design is an award winning product development firm offering industrial design and engineering services to the consumer, medical, and defense markets.
    SYS-CON Events announced today that Vicom Computer Services, Inc., a provider of technology and service solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. They are located at booth #427. Vicom Computer Services, Inc. is a progressive leader in the technology industry for over 30 years. Headquartered in the NY Metropolitan area. Vicom provides products and services based on today’s requirements around Unified Networks, Cloud Computing strategies, Virtualization around Software defined Data Ce...
    The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
    What exactly is a cognitive application? In her session at 16th Cloud Expo, Ashley Hathaway, Product Manager at IBM Watson, will look at the services being offered by the IBM Watson Developer Cloud and what that means for developers and Big Data. She'll explore how IBM Watson and its partnerships will continue to grow and help define what it means to be a cognitive service, as well as take a look at the offerings on Bluemix. She will also check out how Watson and the Alchemy API team up to offer disruptive APIs to developers.
    With IoT exploding, massive data will transform businesses with opportunities to monetize almost anything that can be measured. In this C-Level Roundtable Discussion at @ThingsExpo, Brendan O’Brien, Aria Systems Co-founder and Chief Evangelist, will lead an expert panel of consultants, thought leaders and practitioners who will look at these new monetization trends, discuss the implications, and detail lessons learned from their collective experience. Finally, the panel will point the way forward for enterprises who wish to leverage the resulting complex recurring revenue models, adding valu...
    How is unified communications transforming the way businesses operate? In his session at WebRTC Summit, Arvind Rangarajan, Director of Product Marketing at BroadSoft, will discuss how to extend unified communications experience outside the enterprise through WebRTC. He will also review use cases across different industry verticals. Arvind Rangarajan is Director, Product Marketing at BroadSoft. He has over 19 years of experience in the telecommunications industry in various roles such as Software Development, Product Management and Product Marketing, applied across Wireless, Unified Communic...
    Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? Join this panel of experts as they peel away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud environment, and we must architect and code accordingly. At the very least, you’ll have no problem filling in your buzzword bingo cards.
    Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of robomq.io, and Fred Yatzeck, principal architect leading product development at robomq.io, will discuss how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at the same time reduce Time to Market (TTM) by using plug and play capabilities offered by a robust I...
    @ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this case) takes into account the number and quality of contextual references that a user receives.
    SYS-CON Events announced today that Dyn, the worldwide leader in Internet Performance, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet conditions, Dyn ensures traffic gets delivered faster, safer, and more reliably than ever.
    IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
    The only place to be June 9-11 is Cloud Expo & @ThingsExpo 2015 East at the Javits Center in New York City. Join us there as delegates from all over the world come to listen to and engage with speakers & sponsors from the leading Cloud Computing, IoT & Big Data companies. Cloud Expo & @ThingsExpo are the leading events covering the booming market of Cloud Computing, IoT & Big Data for the enterprise. Speakers from all over the world will be hand-picked for their ability to explore the economic strategies that utility/cloud computing provides. Whether public, private, or in a hybrid form, clo...
    The WebRTC Summit 2015 New York, to be held June 9-11, 2015, at the Javits Center in New York, NY, announces that its Call for Papers is open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 16th International Cloud Expo, @ThingsExpo, Big Data Expo, and DevOps Summit.
    As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, will provide some practical insights on what, how and why when implementing "software-defined" in the datacenter.
    While not quite mainstream yet, WebRTC is starting to gain ground with Carriers, Enterprises and Independent Software Vendors (ISV’s) alike. WebRTC makes it easy for developers to add audio and video communications into their applications by using Web browsers as their platform. But like any market, every customer engagement has unique requirements, as well as constraints. And of course, one size does not fit all. In her session at WebRTC Summit, Dr. Natasha Tamaskar, Vice President, Head of Cloud and Mobile Strategy at GENBAND, will explore what is needed to take a real time communications ...