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Readers Take Us To Task For Outsourcing Coverage

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In This Issue:
1. Editor's Note: Readers Take Us To Task For Outsourcing Coverage
2. Today's Top Story
    - Apple Bets Its Chips
3. Breaking News
    - Inside India
    - Microsoft Unveils Ad-Technology Lab
    - Google Launches Personalized Home Page For Mobile Devices
    - Craigslist Founder Envisions Improved New Media
    - Google Acquires dMarc Radio For $102 Million
    - iPod Lessons For Newbies
    - Microsoft Pushes Windows XP SP3 To Late 2007
    - Pixels-For-Sale Site Spawns A Cottage Industry
    - Advertisers To Bid For Ad Space On Podcasts
    - IBM Posts Sales Decline--But Increased Profits--In 2005
    - New Open-Source License Draft Less Controversial Than Feared For Business
    - Microsoft Updates Tools To Woo Domino Faithful
    - IBM Inks $1.1 Billion Outsourcing Deal With Gap
    - Corel Refreshes WordPerfect, Drawing Tool
    - Salesforce.com Goes Live With Online Apps Store
4. Grab Bag
    - Michael Dell Should Eat His Words, Apple Chief Suggests
    - Google's Shadow Payroll Is Not Such A Secret Anymore
    - The Long And The Short Of Microsoft's Patches
5. In Depth: Security
    - Langa Letter: 5 Essential Steps To PC Security
    - Microsoft Refutes Windows 'Back Door' Claim
    - Microsoft Posts First Windows Vista Security Fix
    - Exploit Loose For Veritas NetBackup Bug
    - Symantec's DeepSight Warns Of Targeted Attacks
6. Voice Of Authority
    - India Inc. Now A Source Of Jobs For Westerners
7. White Papers
    - A Toolkit Approach To Business Analysis: Maximizing Your Return On Business Information
8. Get More Out Of InformationWeek
9. Manage Your Newsletter Subscription

Quote of the day:
"The Chinese use two brush strokes to write the word 'crisis.' One brush stroke stands for danger; the other for opportunity. In a crisis, be aware of the danger--but recognize the opportunity." -- John F. Kennedy


1. Editor's Note: Readers Take Us To Task For Outsourcing Coverage

We've received quite a bit of feedback to our recent outsourcing coverage, and two of our reporters' trips to India to write firsthand about companies there.

Jim Ball of Ball 5 Enterprises in Olney, Md., set the tone for many indignant readers, writing: "I, along with all of those now unemployed because of outsourcing to India, have absolutely no interest whatsoever in reading about all those folks that are enjoying the jobs we all once held."

My colleague Paul McDougall's blog entry on automation stirred quite a bit of heat from readers. Paul writes that automating IT, like outsourcing, is a way that companies are cutting costs, but much of the reader comment focused on India and offshoring.

A reader signing himself as "Puddleglum" wrote: "If the Indian productivity secret were technology, we could--and would have to--adopt it to compete. But India's productivity secret is low costs enabled by the misery of its common people. We will be forced to match it, child brickmaker for illiterate child brickmaker, or go out of business."

A reader signing his name as "Jon" writes: "I suspect that Mr. McDougall is currently employed somewhere outside of India, in what he thinks is a secure job. But plenty of people in India and China can write, too. So watch out!"

Bob Clabaugh writes in the same comment thread: "Outsourcing is a very scary thing; what happens when all of our technology is in the hands of countries that could very easily become our enemies (read China)?"

To read responses to those comments, including responses from me, visit the InformationWeek Weblog.

Our ongoing series on India and outsourcing continues today, as my colleagues Aaron Ricadela and Ron Anderson conclude their trip and report in. They describe companies such as Infosys and Microland, contrast conditions faced by Indians in the IT industry and outside it, discuss the difficulties Indian human-resources managers have in recruiting staff, and outline Indians' efforts to keep its IT industry booming and share the wealth with less-fortunate countrymen.

Also, McDougall is back with a blog entry describing how India creates jobs for Westerners.

While outsourcing brings benefits, the problems created by outsourcing are real. How can they be mitigated? Leave a comment on the InformationWeek Weblog and let us know.

Mitch Wagner
mwagner@cmp.com
www.informationweek.com


2. Today's Top Story

Apple Bets Its Chips
Intel chips will give Macs some new zip. But Jobs still cares more about your living room than your office.


3. Breaking News

Inside India
High tech is in high gear in this country of a billion people, but the pressures of success are rapidly mounting, too.

Microsoft Unveils Ad-Technology Lab
The lab will develop technologies for its upcoming AdCenter, which will provide paid search, analytical tools, and other services for advertisers. It is said to be the linchpin of Microsoft's strategy for catching up with rivals Google and Yahoo in linked online search.

Google Launches Personalized Home Page For Mobile Devices
Mobile users can set it up to automatically display information such as stock quotes, news headlines, Gmail, local weather, and selected RSS feeds.

Craigslist Founder Envisions Improved New Media
Craig Newmark is still keeping most details of his next venture under wraps but in an interview says it will "promote the best of the press," prominently featuring people with the "best reputations."

Google Acquires dMarc Radio For $102 Million
Google said it plans to create a new radio ad distribution channel by integrating the radio advertising company's technology into Google's AdWords platform.

iPod Lessons For Newbies
A London department store is charging money for lessons on how to store and play music on the popular devices. Meanwhile, Apple provides instructions for free.

Microsoft Pushes Windows XP SP3 To Late 2007
Microsoft has pushed back the delivery date of the next major Windows XP service pack update to the second half of 2007, as much as a year later than earlier reports had indicated.

Pixels-For-Sale Site Spawns A Cottage Industry
Copycats galore are rushing to cash in on the success of milliondollarhomepage.com, and their pixel-selling approaches range from Ponzi-style get-rich-quick schemes to clever knockoffs promoting real estate.

Advertisers To Bid For Ad Space On Podcasts
Podtrac, a company that connects advertisers with podcasters, will hold an online advertising auction to determine ad rates for the podcasting market.

IBM Posts Sales Decline--But Increased Profits--In 2005
Overall, revenue in 2005 was off 5.4% at $91.1 billion, with sales of software up 4.4% and sales of services up just 2.5%.

New Open-Source License Draft Less Controversial Than Feared For Business
The Free Software Foundation's much-anticipated General Public License version 3 extends license compatibility to other open-source licenses, prevents businesses from imposing unfair patent restrictions on open-source software, and tightens some other loopholes. In general, though, observers say it's more pro-business than some had feared.

Microsoft Updates Tools To Woo Domino Faithful
Due later this quarter, the Application Analyzer 2006 will examine a customer's current Lotus application environment and suggest a framework for moving those applications to one or more comparable Microsoft applications.

IBM Inks $1.1 Billion Outsourcing Deal With Gap
The 10-year pact calls for IBM to support and manage mainframes, servers, networks, and data centers, as well as provide help-desk and disaster-recovery services.

Corel Refreshes WordPerfect, Drawing Tool
The updated word processor, WordPerfect 3X, sports two-way interoperability with PDF files; users can now pull PDF documents into WordPerfect documents.

Salesforce.com Goes Live With Online Apps Store
Salesforce.com on Tuesday went live with AppExchange, its online applications store.

All our latest news

Watch The News Show

In the current episode:

Tony Kontzer With 'Oracle's Application Plans'
An interview with Oracle senior VP John Wookey, the man heading up the company's ambitious Fusion initiative.

Lori MacVittie With 'Mercury Rises To The Occasion'
Analysis of Mercury Interactive's purchase of Systinet.

Sacha Lecca With 'Five Days In India'
Take a look at some of the photos captured on Aaron Ricadela's recent trip to Bangalore, India.


----- The latest research, polls, and tools -----

IT Hiring Plans
Companies continue to earmark the largest portion of IT budgets for salaries and benefits. Learn what types of IT professionals are most in demand in InformationWeek Research's Outlook For 2006 report, part of our Priorities series. Use this report to benchmark your IT hiring plans for the coming year.

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4. Grab Bag: News You Need From Around The Web

Michael Dell Should Eat His Words, Apple Chief Suggests (New York Times)
Steve Jobs, the chief executive of Apple Computer, recently shared an E-mail chuckle with his employees at the expense of Dell, a big rival.

Google's Shadow Payroll Is Not Such A Secret Anymore (New York Times)
Some bloggers are paid through Google's AdSense program, but maybe not enough to buy Google stock.

The Long And The Short Of Microsoft's Patches (Washington Post)
Microsoft has often been criticized for taking too long to issue security updates for its software, a shortcoming that critics say leaves customers dangerously exposed to online threats. I recently researched the past three years' worth of "critical" Microsoft patches--those that mend flaws that hackers can use to take control over Windows computers--and found that while that criticism may still be valid, Microsoft is making progress on a couple of key fronts.


5. In Depth: Security

Langa Letter: 5 Essential Steps To PC Security
As the new year begins, Fred Langa says to keep these items in mind to help prevent data theft, identity theft, and private information falling into the wrong hands. These steps will give you 365 days of safe computing.

Microsoft Refutes Windows 'Back Door' Claim
Microsoft has denied allegations that the Windows Meta File bug is actually a "back door" planted by the company's developers so they could secretly access users' PCs.

Microsoft Posts First Windows Vista Security Fix
The patch fixes a bug in how Windows' graphic rendering engine processes Windows Meta File images.

Exploit Loose For Veritas NetBackup Bug
Symantec on Tuesday warned users of Veritas NetBackup that a new exploit of a months-old bug is on the prowl, and recommended that administrators patch promptly.

Symantec's DeepSight Warns Of Targeted Attacks
Symantec updated its DeepSight Threat Management System on Monday to provide customers with warnings of attacks specifically targeting their Internet domains.


6. Voice Of Authority

India Inc. Now A Source Of Jobs For Westerners
While the debate rages over whether outsourcing is a positive or negative for Western economies, here's some fresh evidence that shows why the flow of capital from developed countries to emerging markets, to which offshoring contributes substantially, is not a one-way street.


7. White Papers

A Toolkit Approach To Business Analysis: Maximizing Your Return On Business Information
Using integrated analysis toolkits, companies can rapidly build and deploy sophisticated applications for business analysis, budgeting, planning, simulation, and reporting. This white paper explores the toolkit approach to providing business analysis and alternatives for building custom analysis solutions for strategic decision making.


8. Get More Out Of InformationWeek

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