﻿ Saying ta-ta to software development | ZDNet

Saying ta-ta to software development

Summary: Aussie smartcard vendor ERG has decided to outsource to Tata Consultancy Services, and you can't help but think of the Qantas example.

Aussie smartcard vendor ERG has decided to outsource to Tata Consultancy Services (TCS), and you can't help but think of the Qantas example.

We covered the ERG decision exclusively on ZDNet Australia this week. The company will use TCS's software development services in India to either complement or replace (ERG won't tell us) its existing developers in Perth. If you're a software developer, or are looking to employ some in WA, or even Australia for that matter, this can't be good news for you.

You have to wonder whether ERG is taking a leaf out of Qantas's book from last year. TCS was involved there too.

TCS scored the largest outsourcing contract by an Indian vendor in Australia when the airline decided to hand it a AU$120 million contract for application support. Along with a contract to Satyam, more than 200 Qantas IT jobs were offshored.

Topics: Outsourcing, Government AU, Software, Travel Tech, India, IT Employment



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  • So do our living standards slide

    Yet another example of how outsourcing cheap labour in developing nations will ultimately destroy the standards of living in the West. Why pay someone here $85 an hour to do the same job someone in Bombay will do for 5c an hour?

    As IT manager for a small publishing company, I occasionally employ software developers, graphic artists and other personnel on a temp contract basis as we need them, but we always employ local people. We never outsource offshore. I know of other small companies that do the same.

    So for those looking for IT jobs, give the big corporates the go-by and go for the smaller local companies. One, you're much less likely to be relegated to the role of cubicle monkey, and two, you're helping Australian business provide Australian service to Australian people.

    And three, you're helping prevent the slide of our living standards to those of a third-world country, propelled by the insane greed of corporate executives who don't give a rat's arse about our country or the people who live in it.
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  • Not just IT

    Globalisation will continue to result in jobs going offshore from high labour cost countries to low cost countries. This can and will happen in almost every industry; there are relatively few industries which are immune to the effects of globalisation.

    It happened in manufacturing decades ago, and now everything is made in China etc. It happened in agriculture, e.g. much of the fruit and veg in your local supermarket comes from Thailand or similar. It happened in call centres. It is happening in IT. even large accounting and law firms sometimes get their back-room work done overseas.

    And this will keep happening until other countries (India, China, etc) don't have a cost advantage any more.

    I think you are right , the Globalization will continue and the jobs going offshore from high labor countries to low cost countries ,the countries like China ,India etc are progressing very fast and economy of these countries also increasing .

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