Is Offshoring Ethical?

Every time I get together with a group of solution providers, the subject eventually turns to the hiring situation. That in mind, I thought my recent column on employee retention and the offshoring situation would generate a little discussion.

LARRY HOOPER Can be reached via e-mail at lrhooper@cmp.com.

I did not, however, expect it to generate a discussion with the level of passion I witnessed in the e-mails I received.

As a recap, I said that I don't understand why solution providers who can't find reliable talent don't consider offshoring as part of the solution. To me, it's a logical step.

First, let me publicly answer a few of the questions I received in e-mail: Yes, I am, in fact, an American. Yes, as a rule, I like Americans. No, I don't see offshoring as the end of our society. And, the stickler for several of those who e-mailed me directly: No, I don't see it as an ethical issue.

Solution providers sell products every day that are made in China or other "offshore" locations. Software companies that solution providers represent already use offshore developers in their product development cycles. So, in effect, American solution providers already are participating in the offshoring movement. That's why I don't see any issues with a business owner offshoring software development work, especially if that business owner can't find the talent at home.

And finding and keeping talent is definitely a problem. Solution providers here in America are having trouble finding skilled workers, both on the technical side and on the sales side.

Ironically, the situation isn't any better for solution providers in India. A recent study of the IT hiring and job situation in India found that more than 60 percent of IT workers in India have their resums posted on job boards or career Web sites and are open to new job offers, even if they report being happy in their current jobs.

The real challenge for solution providers in India is the multinational. Not only did 90 percent of the survey's respondents say their preferred employer would be a multinational firm, but the survey revealed that the average salary at those large firms with more than 5,000 employees is fully double that of companies in India with fewer than 50 employees, which is typical for a solution provider there.

So, while the hiring situation is getting tighter, it looks better for solution providers in America than for their counterparts in India.

What's your best hiring or employee retention tip? Send it to me at lrhooper@cmp.com.