In This Issue: 1. Editor's Note: Analyzing The Outsourcers 2. Today's Top Story - Microsoft Shares Tumble On Spending Plans Related Stories: - Microsoft Expands System Center - Microsoft Nearly Finished With Windows Live ID Deployment 3. Breaking News - Google Condemned For Click-Fraud Settlement - Mozilla Pulls Major Firefox 2.0 Feature - Sun Needs Layoffs, Cost-Cutting: Channel Partners - EDS Lands $1.7 Billion IT Contract At Kraft Foods - New SocketShield Said To Stop Zero-Day Exploits - Debate Breaks Out Over 'Tag Spam' - China Ready To Swipe Spam Crown From U.S. - Lumus Develops Optical Imaging-Based Display Technology - AOL, Weblogs Launch Financial Blog Network - MySQL Launches Community Development Site - Firm Sells Patents Targeting Ads To Mobile Devices 4. Grab Bag: News You Need From Around The Web - Warnings Over USB Memory Sticks (BBC News) - Traditional Advertisers Move Online (The Wall Street Journal) - Electronic Golf Ball Finder (Gizmag Emerging Technology Magazine) 5. In Depth: Google - Google Offers Free Version Of 3D Modeling Software - Google Places Firefox Ad On Home Page - Google Sued In Israeli Court - Google's Growth Outpaces Rivals - Consumer Input Spurred OneBox 6. Voice Of Authority - 'Outsourced' Programmers Finally Get Same Benefits As Laid-Off Factory Workers—A Fair, But Costly, Development 7. White Papers - Managing Software Requirements 8. Get More Out Of InformationWeek 9. Manage Your Newsletter Subscription
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1. Editor's Note: Analyzing The Outsourcers
As a researcher at InformationWeek, I have the opportunity to read a lot of research. Most of the outsourcing research that passes through my E-mail pertains to job loss or the employment implications of outsourcing on IT careers. In fact, with the release of our National IT Salary Survey, there was an article devoted to just this topic. But the goal I've been tasked with is to determine how successful outsourcing partnerships are, and which outsourcing vendors are truly helping customers meet goals and save money. And it was you, the readers, who set this goal. We've had many requests to revisit our Analyzing the Outsourcers research, last conducted in November of 2004.
Back then, InformationWeek Research conducted a survey of more than 300 IT professionals, all customers of various outsourcing firms. We asked those IT professionals about their outsourcing plans, spending plans, and satisfaction with their providers.
We've just started fielding an updated version of this research and would like any and all customers of outsourcing vendors to sign on and weigh in about your partnerships.
While most would consider data two years old to be ancient history, some of the results from the previous wave of this research are still thought-provoking:
- In 2004, nearly three out of five companies were spending $1 million or more on outsourcing, and a quarter were spending over $10 million. Contrary to popular belief, most of these dollars stayed onshore. For every dollar spent with outsourcers, an average of 76 cents stayed in the United States, 5 cents went to Mexico/Canada, and 19 cents went offshore. How does this spending compare to outsourcing spending in 2006? Give us your input.
- Outsourcing is often a way for companies to find expertise not readily available within the organization. This is why nearly half of organizations surveyed in 2004 reported that operational expertise was the most important factor driving companies to outsource. Tell us why your company outsources.
- Outsourcing customers were generally satisfied with their outsourcers, and seven out of 10 companies stated their outsourcing relationship met or exceeded expectations. Rate your outsourcing vendors.
Now it's your turn. Check out my blog and tell me about your organization's outsourcing successes and challenges. Even better, participate in our 2006 Analyzing the Outsourcers research. Not only will you be heard by your vendors, but you'll also get a free copy of the results.
Microsoft Shares Tumble On Spending Plans The stock price fell 11%, a five-year record drop, after Microsoft said earnings would be hurt by increased investments aimed at fending off rivals like Google. Among Microsoft's areas of investment: software services.
Related Stories: Microsoft Expands System Center Microsoft unveiled two new System Center products and said it plans to get into the software asset management business.
AOL, Weblogs Launch Financial Blog Network The new network is a collection of individual blogs, each dedicated to a widely held public company, that provides independent analysis, news coverage, and commentary.
MySQL Launches Community Development Site MySQL Forge allows members to share articles and tutorials through the site's wiki, post and maintain projects in its directory, and offer sample code snippets in its repository.
----- The latest research, polls, and tools ----- 2006 InformationWeek IT Salary Adviser How does your pay rate? Use our new and improved tool to compare your pay against the results of our 2006 National IT Salary Survey.
Warnings Over USB Memory Sticks (BBC News) U.S. military secrets were found in USB sticks on sale outside an airbase. Smart phones, iPods, and USB memory sticks are posing a real risk for businesses, warn security experts.
Electronic Golf Ball Finder (Gizmag Emerging Technology Magazine) We've written about a few golf ball-finding mechanisms in our time, but none as expensive or as accurate as the BallFinder SCOUT. The device exhibits an astonishing capability in digital imaging and tracking technology, using a video-based camera that can search up to 600 square feet in one second, or almost one-seventh of an acre in 10 seconds.
Managing Software Requirements Requirements may be the most critical aspect of the software development cycle. MKS Requirements 2005 enables you to capture, store, and manage requirements as a fully integrated part of the development process.
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