Thursday, June 19, 2008

Engineering Services Outsourcing - Moving jobs

Today is not a good day for my colleagues and thus me. At one of our Client's place in US, there was a head count reduction. I was surprised to see my direct customer got laid-off. She is very sincere and hard working, and continuing in the job for about 19 years. Still I could not believe that few other people like her lost jobs. Almost 20% cut in head count.

The main reasons I could account for this are low economy, cost challenges and outsourcing. I am in outsourcing business for almost 8 years both at on site and offshore. In my opinion, outsourcing the engineering projects is not a cake walk. Offshore team need several inputs to complete the desired task. We cannot expect the technical competencies on few core technologies. Not everything can be outsourced. Companies has to realize and carefully assert the benefits of outsourcing. Can they justify the direct cost benefits by loosing senior most employees who carry lot of knowledge about their products and processes? May be not.

Anyways, globalization is changing social life everywhere. There are very few technology barriers across the globe due the development of globalization and Internet.


Jythra Engineering Services
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