Tuesday, May 22, 2007

The Magic of IT Empowerment?

As mentioned in my previous article about IT empowerment, the worker is relived that there is potential for less direct management. However, there can be a flipside to that. Management is also relieved that there is potential for a decrease in payroll expenses.

Just as that Vancouver lawyer can communicate in real time with his Toronto counterpart, he can communicate with his even newer counterpart in Bangalore just as easily. Offshoring and outsourcing are by-products of improved information and communications technology. Obviously, this has greatly impacted the call-centre industry at first, but now, complex software systems once developed and maintained in the western world are now being built in developing nations, primarily India. In fact, it is estimated that India is the number one destination for IT outsourcing. The country has coupled modern information and communications technology with a skilled, English-speaking workforce with a lower cost of living than all western nations, to grow their information technology sector. Other countries, such as Ireland, China, Russia, and in some cases Canada, are following suit.

So it appears that this technology can either empower a worker to do his job more effectively, or move it to a low-cost center all together. Obviously, there have been many drawbacks to outsourcing on both sides of the ocean, too many to get into here.




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