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6/6/2006
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Reverse The (Outsourcing) Curse?

In This Issue:
1. Editor's Note: Reverse The (Outsourcing) Curse?
2. Today's Top Story
    - Ballmer: 'A Lot Of Work To Do' On Vista
    Related Story:
    - Blog: Steve Ballmer Answers Wall Street...Sort Of
3. Breaking News
    - Study: Offshoring Impact On U.S. Jobs Overblown
    - U.S. Hits H-1B Visa Cap For Fiscal 2007
    - Homeland Security And Europe Clash Over Airline Passenger Data Agreement
    - FBI Wants Internet Records Kept Two Years: Source
    - Six Things You Didn't Know About Linux: A Beginners' Guide
    - JBoss Chief Fleury Talks Up Red Hat Acquisition
    - Net Neutrality Puts Time Crunch On Telecom Agenda
    - Mac Virtual Machine Close To Final Release
    - AMD Outlines Processor Road Map
    - Growing Volumes Of Data Fuel Database Software Sales
    - Employers Brace As World Cup Goes Live On The Internet
    - Raided Entertainment Site Promises Swift Return
4. Grab Bag
    - Review: Motorola's 'BlackBerry Killer' (AP)
    - Top 10 Strangest Custom Gaming Systems (Techeblog.com)
    - Searching For Parking? Try Online (Wired News)
5. In Depth: Bugs, Outages, Patches
    - Mozilla Patches 12 Firefox Flaws
    - Virus Returns To Hewlett-Packard Web Site
    - Flaw Discovered In Snort Intrusion Prevention Software
    - AOL Suffers E-Mail Outage
    - Circuit City Fixes Forum Flaw That Infected IE Users
    - Blog: The Security Clock, Tick Tock
6. Voice Of Authority
    - About That Schwartz Blog, 'Nobody's Created More Jobs Than You'
7. White Papers
    - ROI Comparison: SSL VPNs Or IPSec For Remote Access?
8. Get More Out Of InformationWeek
9. Manage Your Newsletter Subscription

Quote of the day:
"If you want to tell people the truth, make them laugh, otherwise they'll kill you." -- Oscar Wilde (1854 - 1900)


1. Editor's Note: Reverse The (Outsourcing) Curse?
What goes around comes around, even in outsourcing apparently! A recent front-page story in the Boston Globe says Indian software companies are facing a labor crunch similar to what U.S. companies experienced five years ago and are responding in kind. To whit, companies like Infosys Technologies and Tata Consultancy Services are planning to recruit thousands of new workers from around the world over the next year—including from the Unites States, according to the Globe. Infosys alone plans to spend $100 million on this mission, hiring both recent graduates and experienced workers.

Dubbed "reverse outsourcing," the effort involves both opening offices in other countries and hiring foreigners to work in India (see Marianne McGee's recent blog asking whether IT pros would consider moving to India to move up the career ladder for a range of perspectives from InformationWeek readers on that idea).

Now much of this hiring supposedly won't be done in the Unites States. That's not surprising—Indian firms are under the same cost pressures as are U.S. and other western companies, and they're looking at rising salaries for local workers given the fierce competition for their services. But they'll hire some Americans, and that trend is expected to grow. It will be interesting to see whether that sparks a mini price war or helps to ratchet up salaries a bit—at least in some jobs—on both sides of the ocean.

It's not so far-fetched. If companies like EDS and IBM are looking to hire thousands of mostly overseas workers—many in India—at a time when Indian outsourcers and developers can't fill their own staffing needs internally, I see a collision ahead. Even Japan, which faces a nearly 10% loss of its current workforce between 2007 and 2009, may be forced to consider foreign workers. What we're looking at is a big circle, where Indians hire Americans and other foreigners and global western companies hire Indians, Chinese, etc. All this suggests the potential for a shortage of IT workers, if not fierce competition, and if so, there has to be some upside here for IT workers everywhere and certainly here as well.

Recent reports that the offshoring impact on U.S. jobs is overblown—at least for IT positions requiring advanced degrees and business knowledge—and that half of IT pros are confidently planning to look for new jobs are enough to brighten up the oft gloomy IT employment picture. But toss in a growing global battle for IT resources, and you have to believe things just might be starting to pick up for IT workers. Does anyone see cause for optimism? What do you think? You can let us know by going to the blog entry for this Editor's Note and leaving a comment.

Patricia Keefe
pkeefe@cmp.com
www.informationweek.com


2. Today's Top Story

Ballmer: 'A Lot Of Work To Do' On Vista
At an investment conference this week, Ballmer refused to be drawn into a discussion of whether Vista would ship in January.

Related Story:
Blog: Steve Ballmer Answers Wall Street...Sort Of
Steve Ballmer has heard an earful from Wall Street lately about explaining rampant spending and buying back more stock. But Microsoft's CEO gave little ground at an investors' conference in New York this week.


3. Breaking News

Study: Offshoring Impact On U.S. Jobs Overblown
IT positions requiring advanced degrees and business knowledge are growing at a pace on par with the boom years experienced in the 1990s, a university's new study claims.

U.S. Hits H-1B Visa Cap For Fiscal 2007
As Congress wrangles over details for comprehensive immigration reform, the country reached the 65,000 limit on H-1B visas.

Homeland Security And Europe Clash Over Airline Passenger Data Agreement
A high European court questions the legality of a requirement to provide the U.S. with personal data about passengers within 15 minutes of every takeoff. Homeland Security's Secure Flight program, meanwhile, continues to face privacy and technical obstacles.

FBI Wants Internet Records Kept Two Years: Source
The FBI director made the request—which he pitched as a way to help with investigations into terrorism and pornography—during a meeting this week with executives from Google, Microsoft, and others, the source says.

Six Things You Didn't Know About Linux: A Beginners' Guide
Should you give the open-source operating system a whirl? Here are some answers, along with advice on how to get started.

JBoss Chief Fleury Talks Up Red Hat Acquisition
JBoss former chief Marc Fleury—now senior VP of Red Hat's JBoss division—discusses the impact of the deal on the company's existing partnerships and customers, future coopetition with IBM, and pact with Microsoft.

Net Neutrality Puts Time Crunch On Telecom Agenda
Providers have about 20 days to push for changes to cable franchising rules and universal service fees.

Mac Virtual Machine Close To Final Release
The software lets users run Windows or Linux alongside Mac OS X. Vendor Parallels recently rolled out the final prerelease version.

AMD Outlines Processor Road Map
The No. 2 chipmaker plans to roll out more advanced chip designs, faster processors for servers, and cooler ones for notebooks.

Growing Volumes Of Data Fuel Database Software Sales
Microsoft gains on Oracle and IBM, but open-source databases are growing in popularity.

Employers Brace As World Cup Goes Live On The Internet
Workers with broadband connections may spend more time watching the games than doing their jobs.

Raided Site Promises Swift Return
A Swedish site called The Pirate Bay directs people to more than 157,000 movies, including newly released blockbusters, according to the Motion Picture Association of America. Police have seized the site's server farm.

All Our Latest News

Watch The News Show

In the current episode:

John Soat With 'Eye On IT'
Oracle makes another acquisition, state IT budgets are still tight, the H1-B visa quota has been met for 2007, and more.

Aaron Ricadela With 'AMD Gets Ambitious'
AMD will ramp up production and says it will be able to serve one-third of the chip market in two years.

Peter Gorenstein With 'iPod Etching'
The NYPD launches a new program to reunite people with their lost or stolen portable electronic devices.


----- The latest research, polls, and tools -----
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Download PDFs Of InformationWeek's Top Stories
Visit InformationWeek Downloads to get InformationWeek's biggest and best articles all in one place. Presented in an easy-to-read PDF format, they'll help you analyze and make purchase decisions for today's technology solutions.

Satisfied With Your Pay?
Are you satisfied with your salary and compensation package? Learn how your pay compares to that of your peers with our free and confidential online tool. Featuring more than 20 job functions and tracking IT compensation across 20 metropolitan areas, InformationWeek Research's 2006 IT Salary Adviser makes it easy to compare your salary and compensation.
-----------------------------------------


4. Grab Bag

Review: Motorola's 'BlackBerry Killer' (AP)
Motorola's latest phone, out this week, shares its name with the iconic gadget guru of the James Bond movies: Q.

Top 10 Strangest Custom Gaming Systems (Techeblog.com)
Our editors have compiled a list of the "Top 10 Strangest Custom Gaming Systems" for your enjoyment. Which ones are your favorites?

Searching For Parking? Try Online (Wired News)
Forget about looping the block searching for a spot. Soon motorists will be able to swoop in and snag choice parking spaces using cell phones or handheld devices.


------- Now Hiring ----------------------
Real Networks, Inc. seeking Project Manager of Platform Services in Seattle, WA

M&T Bank seeking Business & Planning Analyst in Buffalo, NY

Harvey Nash seeking Quality Assurance Lead in Chicago, IL

Quantronix, Inc. seeking Senior Systems Analyst in Boston, MA

Sai People Solutions seeking Systems Administrator in Boulder, CO

For more great jobs, career-related news, features and services, please visit CMP Media's TechCareers.
-----------------------------------------


5. In Depth: Bugs, Outages, Patches

Mozilla Patches 12 Firefox Flaws
The organization also patched the Thunderbird e-mail client and older SeaMonkey browser. It's the fourth security update to the 1.5 edition of the browser since it was released in November.

Virus Returns To Hewlett-Packard Web Site
The Funlove virus was discovered Wednesday in a driver available through HP's FTP servers, BitDefender said.

Flaw Discovered In Snort Intrusion Prevention Software
Researchers from Demarc, a security vendor, discovered the flaw May 17 and released a patch earlier this week.

AOL Suffers E-Mail Outage
Users trying to send and receive e-mail were prevented from doing so starting around 11 a.m. EDT on Thursday. The service was back up about 4 p.m., a spokesman said.

Circuit City Fixes Forum Flaw That Infected IE Users
The company patched a customer-support message forum Web site that had been silently installing a backdoor Trojan on visitors' PCs.

Blog: The Security Clock, Tick Tock
Gregg Keizer notes he complains plenty about Windows' security—or lack of it—and decides he should quantify his grousing. Not by the number of attacks or bytes lost, but in an even more precious commodity for most of us: time.


6. Voice Of Authority

About That Schwartz Blog, 'Nobody's Created More Jobs Than You'
The message wasn't surprising, but the deliverer was. New Sun CEO Jonathan Schwartz faced the music and announced that 4,000 to 5,000 employees will be dismissed at Sun over the next six months. What does this Schwartz have in common with the one who, upon being appointed a month ago, said he wasn't there "to take a whack to head count"?


7. White Papers

ROI Comparison: SSL VPNs Or IPSec For Remote Access?
This white paper helps determine ROI when replacing existing IPSec with an SSL VPN and presents scenarios for mobile employees and business partners.


8. Get More Out Of InformationWeek

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