OK, OK, I Hear You


I knew things were out of hand yesterday when one of my own editorial team gave me a hard time about updating my blog.

OK, OK, so I've been remiss. I WAS on vacation for part of that time, but mainly the day-to-day grind here at CRN got in the way.

But I decided that if someone at EDS can find the time to blog, I sure as heck better get back to the keyboard.

One thing you won't find in this EDS blog, probably, is a reference to a recent study out of DiamondCluster about offshore outsourcing.

Certainly, this Chicago-based services company has an agenda in saying so, but the report highlights the fact that "premature terminations" of offshore contracts are climbing. You've gotta love that term.

Anyway, DiamondCluster's research found that companies are planning to reduce their outsourcing coverage in general. And, potential buyers are looking at the practice less as a cost-savings move and more as a way to reallocate their own internal resources. By the way, 88 percent of the survey respondents were still very worried about the local backlash associated with using an offshore service provider.

While I'm on the topic, consulting firm neoIT has released its latest lookat factors influencing salary differentials between offshore and nearshore locations. This info, in combo with CRN's 2005 Compensation Survey set to be released next week could be good ammo for you to have before your next round of employee reviews.

Among those factors: physical infrastructure of the country in question, the impact of governance, disaster recovery capabilities and travel costs.