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What Doesn't Outsource Us Makes Us Stronger

In This Issue:
1. Editor's Note: What Doesn't Outsource Us Makes Us Stronger
2. Today's Top Story: High-Tech Post-Election
    - Greenspan Predicts Productivity Pickups, Dems Will Change Sarbanes-Oxley
Related Stories
    - AT&T/BellSouth Merger Remains In Limbo After Election
    - Consumer Electronics Group Sees Promise After Elections
3. Breaking News
    - The Best Online Shopping Stops For PCs And Electronics
    - Microsoft Exec Says Vista Is So Safe He Doesn't Need Antivirus
    - Red Hat Speaks: Microsoft And Oracle Are Following The Linux Leader
    - CA To Deliver Software For Microsoft Exchange Server 2007
    - How Zune Stacks Up To The iPod
    - Corel Bundles Firefox With $79 WordPerfect Home Suite
    - IBM Unveils Line Of Quad-Core Servers
    - Microsoft Serves Up 'Blue Screen Of Death' Screen Saver
    - IBM Gets A Second Life
    - Packet Loss Problems Surface In Wi-Fi Nets
    - Giant Sucking Sound: Perot Systems Outsources To Mexico
4. Grab Bag
    - New A's Ballpark To Be High Tech (AP)
    - Growth Of PDA Injuries A Concern For Companies (USA Today)
    - Exhibit Shows Earth As Seen From Space (AP)
5. In Depth: Wireless Phones
    - New Patents Point To Apple Phone
    - Yahoo, Linksys Partner On Cordless VoIP Phone
    - Sony Ericsson, Vodafone Make Separate Smartphone Partnerships
    - Robert Redford Backs Short Films For Cell Phones
6. Voice Of Authority
    - Target Linux: While Ellison Brings The Hammer, Ballmer Wields ... The Coupon
7. White Papers
    - The Goldilocks Principle: Approaches To Software Validation
8. Get More Out Of InformationWeek
9. Manage Your Newsletter Subscription

Quote Of The Day
"Statistics: The only science that enables different experts using the same figures to draw different conclusions." — Evan Esar


1. Editor's Note: What Doesn't Outsource Us Makes Us Stronger

That your job could be shipped to Bangalore or Ho Chi Minh City is always a possibility. It's not a feel-good story for any U.S. tech worker, but one school of thought posits the offshore trend is actually a good thing. How's that again?

It's a good thing academe has those ivory towers; they help keep the academics out of the practical world where they can wreck havoc. Where am I going with this? In non-lacrosse-related news from Duke University, two new studies examine the offshore trend for engineering. The studies, conducted by Duke's Fuqua School of Business and Pratt School of Engineering, surveyed U.S. executives, and that's where the similarities end.

The Fuqua study (Booz Allen Hamilton was in on it, too) found that labor costs are the primary reason for hiring engineers in India, China, and Eastern Europe. However, the "global war for tech talent" is starting to pinch, and now 70% of those surveyed note concerns about the supply of talented workers. The other driver for the move offshore is the corporate dream of a 24-hour workday; perhaps the sun never sets in the Intel Empire. The conclusion is that skilled R&D U.S. jobs aren't shifting overseas; rather, firms can't find talent at home so they look abroad out of necessity, and the added engineering horsepower spurs innovation.

Meanwhile across campus at Pratt, the survey says that the United States is brimming with engineering talent and the only reason for any corporation to look beyond the border is lower labor costs.

Now reconcile that. Fortunately, Pete Engardio at BusinessWeek pokes some holes in the findings of both Duke studies while colleague Vivek Wadhwa tackles the issue from another angle—the problem isn't engineering talent, it's research and innovation.

Benjamin Tomkins
bt@btomkins.com
www.informationweek.com


2. Today's Top Story

Greenspan Predicts Productivity Pickups, Dems Will Change Sarbanes-Oxley
The former Federal Reserve chairman also said the U.S. health care industry won't fully embrace IT as long as older technophobic physicians are in charge. Greenspan made his points at an AMR Research conference.

Related Stories

AT&T/BellSouth Merger Remains In Limbo After Election
John Dingell, incoming Democratic chairman of the House Energy and Commerce Committee, created a brief flurry of activity after the election when he suggested the FCC should look at the proposed merger carefully "even if it takes until next year."

Consumer Electronics Group Sees Promise After Elections
Consumer education about HDTV, the global environment and trade, intellectual property law, and technology jobs are some of the top issues on the Consumer Electronics Association's agenda in the upcoming year.


3. Breaking News

The Best Online Shopping Stops For PCs And Electronics
The top online shopping sites (as well as old-fashioned stores) to buy computers and electronics are rated in a new survey of Consumer Reports' readers. Big winners: Crutchfield and Costco.com.

Microsoft Exec Says Vista Is So Safe He Doesn't Need Antivirus
The security in the new operating systems has improved so much that Windows co-president Jim Allchin lets his son run a PC without antivirus software.

Red Hat Speaks: Microsoft And Oracle Are Following The Linux Leader
Red Hat executive VP of engineering Paul Cormier talks about Red Hat's response to the newly invigorated competition from Microsoft and Oracle in the Linux market.

CA To Deliver Software For Microsoft Exchange Server 2007
The products will provide data protection, e-mail archiving, compliance, and electronic data discovery for Microsoft Exchange Server 2007.

How Zune Stacks Up To The iPod
Microsoft is offering a device that has an equal number of weaknesses and strengths. But the company's greatest weapon may the hundreds of millions of dollars it's expected to spend on marketing.

Corel Bundles Firefox With $79 WordPerfect Home Suite
The deal adds Firefox to a software suite that includes home versions of the WordPerfect word processor, Quattro Pro spreadsheet, Corel SnapFire photo editor and organizer, and WordPerfect Mail e-mail client.

IBM Unveils Line Of Quad-Core Servers
IBM says it will be shipping over the next two months a line of servers with three to four times the performance of systems that IBM offered less than a year ago.

Microsoft Serves Up 'Blue Screen Of Death' Screen Saver
Demonstrating a sense of humor, Microsoft offers as a free download a screen saver that mimics the notorious "Blue Screen of Death" error display.

IBM Gets A Second Life
IBM is set to invest $10 million to increase its presence in the market for technologies that enable so-called virtual worlds such as Second Life.

Packet Loss Problems Surface In Wi-Fi Nets
The issue could affect voice quality of Wi-Fi and also create some end-user problems in network authentication, one engineer says.

Giant Sucking Sound: Perot Systems Outsources To Mexico
Perot Systems is opening a center in Guadalajara to provide outsourced tech services like desktop support, infrastructure management, and engineering services to companies in the United States.

All Our Latest News

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

Ready, Set, Go?
Will the release of Vista provide business technology professionals with the security and functionality they've been hoping for? Learn how nearly 700 business technology professionals answered these questions and more in InformationWeek Research's report Windows Vista: Ready, Set, Go?

Go In Depth On The Topics That Matter Most.
Visit the InformationWeek Download site to help you as you analyze and make purchase decisions on critical technology solutions. The site gives you exclusive access to the original InformationWeek reports in an easy-to-read format. Topics covered include security and privacy, business intelligence and analytics, networking and infrastructure, data center, and mobile and wireless.

Everything You Hate About IT—And Weren't Afraid To Say
The Network Computing Reader Survey

For Network Computing's annual reader poll, we asked some hard-hitting questions: Which tech buzzword do you despise? Who does your IT group regularly bang heads with? What do you really think about SOA? And lots more. Our readers responded with blunt honesty ("Virtualization makes me want to punch the next salesperson who mentions it"). See what else they had to say.

Then dive deep and check out the results of 25 poll questions on topics including software pricing trends, vendor support shortcomings, and the causes of failed IT projects.
http://www.networkcomputing.com/gallery/2006/1109/1109f1poll1.jhtml

-----------------------------------------


4. Grab Bag

New A's Ballpark To Be High Tech (AP)
If Cisco Systems has its way, the Oakland Athletics' new ballpark in Fremont, Calif., will be the stadium of the future. Fans will swipe electronic tickets stored on cell phones. Bleacher bums will view instant replays at their seats with laptop computers. And digital advertising displays will be able to switch images based on the buying habits of the people walking by through data embedded in their cell phones.

Growth Of PDA Injuries A Concern For Companies (USA Today)
Employment lawyers are warning companies they could face liability or workers' compensation claims related to employee injuries from personal digital assistants.

Exhibit Shows Earth As Seen From Space (AP)
Science and art merge in a stunning new Smithsonian exhibition featuring planet Earth as seen from above. Some of the satellite images show the home planet as only astronauts can see it; others taken with special instruments show things even they can't see.


5. In Depth: Wireless Phones

New Patents Point To Apple Phone
Apple applied for patents for an "actuating user interface for media player," technology that will likely replace the iPod scroll-wheel, and for a universal docking station with speakers.

Yahoo, Linksys Partner On Cordless VoIP Phone
The new cordless phone lets people make calls over a landline and a broadband Internet connection.

Sony Ericsson, Vodafone Make Separate Smartphone Partnerships
Sony Ericsson is making an acquisition to beef up support for "push" wireless e-mail and multimedia apps, while Vodafone is partnering with Microsoft to create new applications and content compatible with Windows Mobile.

Robert Redford Backs Short Films For Cell Phones
Six independent filmmakers will be the first commissioned to make short films especially for the medium.


6. Voice Of Authority

Target Linux: While Ellison Brings The Hammer, Ballmer Wields ... The Coupon
Talk about a difference in style. When Microsoft CEO Steve Ballmer wants to co-opt the Linux movement to the company's advantage, he dresses it up in patent peace and coupons. Oracle CEO Larry Ellison just brings the hammer down.


7. White Papers

The Goldilocks Principle: Approaches To Software Validation
Software validation requires critical thinking and knowledge of the tools available to manufacturers. A new technical information report can be used to get validation just right. This document describes how to apply principles of critical thinking and risk management to produce value-added validation evidence.


8. Get More Out Of InformationWeek

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