Profile of Marianne Kolbasuk McGeeSenior Writer, InformationWeek
News & Commentary Posts: 1298
Marianne Kolbasuk McGee is a former editor for InformationWeek.
Articles by Marianne Kolbasuk McGee
posted in January 2009
In the past, IT services vendors often resisted terms clients tried to include in their offshoring contracts. But in the aftermath of Satyam's financial fraud mess, outsourcers will be more willing to bend on client demands, especially if they're anxious to pick up work from Satyam's ex-customers.
Satyam's financial fraud scandal has one services vendor pushing for an industry-wide set of ethics to ease outsourcing fears.
Microsoft's plans to lay off 5,000 workers have ruffled the feathers of Sen. Chuck Grassley (R-Iowa), a long-time critic of the U.S. H-1B visa program. Microsoft, a top 10 employer of H-1B visa holders, has been among the most vocal tech companies over the last several years urging Congress to raise the cap on H-1B visas. Now Grassley is urging Microsoft to furlough those temporary foreign workers first before handing out pink slips to Americans and permanent U.S. residents.
Satyam's financial fraud mess is undoubtedly supplying an extra dash of drama to the Indian IT outsourcing marketplace lately. However, the economy is still the dominant factor fueling change in what clients expect these days from their IT services providers, says an Infosys executive.
Average pay for IT professionals rose 4.6% to $78,035 in 2008, according to Dice's annual salary survey.
While many companies these days are focused on squeezing out extra value from existing IT investments, some are deploying new technology tools to help their businesses adapt to and survive the economic downturn.
Satyam customers aren't the only ones worried about the company's mess. Non-Satyam clients who outsource pieces of their IT to other services providers should be looking over their shoulders, too.
The industry might be leading a trend that will convince companies in other sectors to track their IT assets using RFID technology.
Founder and chairman B. Ramalinga Ramu's quick departure sends customers scrambling to evaluate how the company's financial fraud will impact their own IT operations.
The new year almost always ushers in feelings of high hopes. While the rotten economy is putting a damper on some of that customary New Year wishfulness this time, career experts say IT pros should feel optimistic about jobs in 2009.