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HAGEL, J. III. 2004. Capturing the Real Value of Offshoring in Asia. Working paper.
(Available at www.johnhagel.com/paper_offshoring.pdf).

Hagel argues that most companies do not get the full value from offshoring because they focus on labor arbitrage rather than using offshoring to accelerate and expand capability initiatives. Many of the examples given are from a call center (eTelecare) in the Philippines and from hardware manufacturing firms in China. Some of the topics that receive coverage are wage rate differentials at different skill levels and how to make that work for your company; distinctive skills held by the offshore vendor such as large pools of engineering talent and deep experience with designing for manufacturability; taking advantage of cultural attributes such as using social networks and personal relationships to enhance formal and organizational relationships; advantages of being able to hire more people, especially at the managerial level, because of the lower cost, in order to improve skill building, enact process improvements, and impact performance; compressing work cycles through larger teams and working round the clock; creating more flexible supplier relationships; and expanding the scope of capacity building by moving up the value chain, expanding into adjacent activities and markets, and expanding backward into the supply chain.

HAGEL, J. III. 2004. Offshoring Goes on the Offensive. The McKinsey Quarterly 2.

Hagel worked in McKinsey's Silicon Valley office for many years before becoming an independent business consultant. The article focuses on some of the reasons beyond low-cost labor that would cause companies to want to offshore work. The focus is on distinctive skills and high performance levels offered by some of the offshoring vendors. One company that is profiled in the article is the Philippine firm eTelecare, which operates a state-of-the-art call center. Other examples include Taiwanese firms doing wireless chip design. One of the most interesting points of the article is about these companies taking advantage of the low cost of middle management salaries so as to increase the middle management ranks to a point where they can not only handle routine administration and management tasks but also spend time improving lower-level employee skills. Given that the applicant pools available to the offshoring companies tend to be larger and stronger, many of the best vendors spend more money on the hiring process - going through a lengthier and more rigorous screening process to get higher quality employees. Another feature of many of the better offshoring companies is to devote set-aside time of middle-level managers to identify and implement process improvements that enhance operational performance. The article also talks about ways that offshore vendors have helped companies move into new product markets such as Gateway into plasma televisions, Hewlett-Packard into digital cameras, and Dell into smart phones through the help of Asian original-design manufacturers.

HALBFINGER, D. M. 2005. Pentagon's New Goal: Put Science Into Scripts. The New York Times (Aug. 4).

The article describes a program funded by the US Air Force and Army to teach scientists how to write and sell screenplays. The purpose is to attract students to careers in science.

HALLEZ, F. 2004. Global Sourcing and ICT Offshoring: The Approach of Siemens Business Services. The EU-U.S. Joint Seminar on Offshoring of ICT Services and Related Services, Brussels, Belgium (Dec.).

From Europa Employment Analysis Web page. In the framework of the EU-US co-operation, a joint seminar with experts from the EU Member States and the US Department of Labor on offshoring of ICT and related services was held in Brussels from 13-14 December 2004. The seminar's key conclusions were the following.

· Offshore outsourcing is here to stay (part of a global business strategy to benefit from opportunities from globalization).

· The need for new data to analyze the scale and possible impact of the phenomenon on the EU economy (from currently available data, no valid trend can be directly observed). Also the actual net benefits are much lower than expected, and, therefore, policy responses should be commensurate with the degree of uncertainty which was acknowledged.

· However, since we do not know whether this offshoring is a trend or the tip of the iceberg, we cannot ignore it.

· Best practices include more dialogue, early warning by employers, avoiding compulsory redundancies, etc.

· Among the policy options to be investigated in this context are: adaptability of workforce, early warning measures, improving social dialogue, encourage innovation and R&D, and promotion of international labor standards.

HAMM, S. 2005. A Brain Trust in Bangalore. Business Week Online (July 29).

This brief article discusses the research laboratory opened by Princeton-based Sarnoff Corporation in Bangalore. It mentions the distributed working environment and some issues about the culture of the research lab. Brief comparisons are given with some other US-based companies opening research labs in India.

HARSHA, P. 2005. Help Requested in Support of Defense Authorization Amendment. Computing Research Policy Blog, Computing Research Association (July 21). (Available atwww.cra.org/govaffairs/blog/archives/000383.html).

This is a blog entry that urges support and awareness for an amendment proposed by Sen. Susan Collins (R-ME) and Sen. Ted Kennedy (D-MA) to the FY 2006 Defense Authorization bill that "would increase funding for a number of programs of interest to the computing research community, including a $10 million plus-up to 'fundamental computer science and cybersecurity research at DARPA.' "

HARSHA, P. 2005. Thoughts on the Science Gap and the Appeal of Computing. Computing Research Policy Blog (Aug. 11). (Available at www.cra.org/govaffairs/blog/archives/000393.html).

This commentary on an op-ed article by Washington Post columnist Robert Samuelson (also in this bibliography) largely agrees with Samuelson. It then goes on to discuss both the hostile culture for attracting foreigners to study and work in the United States and the image problem that is partly responsible for low numbers of US students choosing to study computing. Some recent efforts to address this image problem are described.

HARVEY, O. 2005. Your life for Sale. The Sun, London, U.K. (Available atwww.thesun.co.uk/article/0,,2-2005280724,,00.html).

Summary from paper. In a shocking investigation, [our reporter] bought 1,000 Brits' names, banking details and passwords...all obtained from crooks in Indian call centres.

HATCH, P. J. 2005. Offshore 2005 Research: Preliminary Findings and Conclusions. Ventoro (Available at www.ventoro.com).

This 115-page report, by a consulting firm that serves US and European companies wanting to outsource work, is based on interviews with more than 5,000 executives and 300 outsourcing vendors around the world. Topics include statistics about offshoring, making the offshoring decision and whether to buy or build capacity, selecting and managing vendors, appropriate roles for vendors, statistics and analyses on culture and politics of countries where a company might send work, people and teams and leadership issues both on the vendor and client premises, performance and process and audit issues, managing projects, and managing risks.

HAVEMAN, J. D. AND SCHATZ, H. J. 2004. Services Offshoring: Background and Implications for California. Public Policy Institute of California (Aug.).

This is a good overview of the offshoring issue with some additional information about the actions by states to protect jobs and about the possible impacts on California. The paper identifies issues that need to be considered when implementing protectionist measures at the state level, including the cost of the policy, how many workers it will affect, whether it is appropriate to provide assistance to relatively high-wage workers since most government programs are targeted at low-wage workers, whether restricting offshoring will help workers within that state (given that the contracts may end up going to US firms in other states), and whether there might be all kinds of unintended consequences such as falling out of compliance with international trade agreements. The authors advocate using some of the funds saved from using lower-cost workers in outsourcing arrangements to provide extra benefits for displaced US workers, both to cushion the blow temporarily and to speed the return to work. They argue that labor market data is inadequate for making policy decisions about outsourcing, but it is clear that the numbers of people affected are relatively small and that policies that ease the situation for displaced workers rather than trying to stop offshoring are more likely to help the economy.

HAWK, S. AND MCHENRY, W. 2005. The Maturation of the Russian Offshore Software Industry. Journal of Information Technology for Development (to appear).

From the paper's abstract. In the decade of the 1990's, India leapt ahead of all other competitors for off-shore programming business, giving the impression that Russia had not lived up to its potential. This paper uses case studies of firms and clients and available literature to investigate what Russia has achieved so far, what bottlenecks and hindrances have prevented it from going further, and how those problems are now being addressed. Based on the Heeks/Nicholson and Carmel models, it is concluded that there have been important improvements in domestic input factors, infrastructure, and software industry characteristics; some improvements in linkages with customer firms; and relatively little progress in improving national vision and strategy. The industry has achieved a "platform of maturity" from which further growth is now possible.

HAYWARD, D. 1997. How Offshore Programmers Save IBM Millions. TechWire (Feb. 18). (Available atwww.offsiteteam.com/outsourcing1.html. Accessed Aug.).

From the article. IBM expects to save millions of dollars a year and cut some of its software product development cycles by more than a third thanks to what it claims is a radical new application development method. Big Blue said Tuesday it has split the development of eight VisualAge PartPak products between Seattle and four low-cost programming centers in Asia and Europe. The PartPak products are Java-based components for the Internet and corporate intranets and are due to ship by the end of September this year. Programmers and analysts working for IBM in Seattle will supervise and review work their colleagues in Asia and Europe have carried out a few hours earlier. They will then set new targets for their offshore colleagues to meet the next day. IBM officials said the two-shift system lets the company both increase its productivity and cut its costs dramatically.

HEEKS, R. B. 1999. International Perspectives: Software Strategies in Developing Countries. Communications of the ACM 42, 6 (June) 15-20.

This is an informative article on five strategies used by software companies in developing countries, written by a management professor from the University of Manchester. The article is somewhat dated, and some of the trends may have changed somewhat. Most software firms in developing countries are in the services rather than the product business. Large amounts of development work take place at the client's site by having developers travel to those sites. Most work undertaken by these companies is relatively low-skill software construction and testing. Topics include first-mover advantages of offshoring firms and countries, the emergence of new country markets, heavy expenses for offshoring companies sending workers overseas, opportunity costs of applying highly-skilled workers to external rather than domestic markets, reasons for not developing domestic markets, using domestic markets as springboards to external markets, and strategies that developing countries can employ to build up their offshoring industries.

HEEKS, R. KRISHNA, S., NICHOLSON B., AND SAHAY, S. 2001. Synching or Sinking: Trajectories and Strategies in Global Software Outsourcing Relationships. IEEE Software 18, 2, 54-60.

Abstract from paper. Clients and software developers need to move their global outsourcing relationships up the value chain to reap greater benefits. Yet such moves bring costs and risks. The authors investigate the strategies that differentiate successful and unsuccessful value chain moves. Case studies from longitudinal research identified synching as a key success strategy: building client-developer congruence along six identified dimensions. Synching can be problematic because distance still matters in our supposedly borderless world. Distance particularly constrains the synching of tacit knowledge, informal information, and cultural values. Clients must recognize this - and the external shocks to synching that occur over time - and adopt appropriate buffering tactics.

HELLOSOFT, INC. 2005. Corporate Home Page. (Available at www.hellosoft.com/ aboutus/default.htm (Aug.).

The site provides information about this entrepreneurial IT startup, including information about its offshoring practices.

HENG, S. 2005. Software Houses: Changing from Product Vendors to Solution Providers. Economics: Digital Economy and Structural Change. Deutsche Bank Research 50 (April).

Extract from paper (slightly modified). This study adopts the user's point of view in outlining the key trends in the product ranges of the software houses from system software to application software. Because of its external vantage point, this study does not address new approaches in software development such as open source software or Model Driven Architecture (MDA) nor does it deal with the convergence of information and communications technologies (ICT), for example, in the shape of voice over Internet protocol (VoIP). And to round off, we quantify the market environment for software houses on an international comparison.

THE HINDU 2005. U.K. Police Probing Call Centre "Scam'' in India. The Hindu (June 24) (Available atwww.hindu.com/2005/06/24/stories/2005062404241300.htm)

From the article. The police investigated allegations that a worker at a call centre in India sold confidential details of British bank account-holders to an undercover journalist…The details were said to include passwords, passport data and addresses making the affected account holders vulnerable to identity theft. These were shown to security experts who confirmed that the details were genuine. The informant, believed to be a middleman, reportedly offered to provide details of up to 2,000,000 bank accounts handled by more than one call centre.

HIRA, R. 2003. Utilizing Immigration Regulations as a Competitive Advantage: An Additional Explanation for India's Success in Exporting Information Technology Services. Center for Science, Policy, and Outcomes, Columbia University. (March).

This article provides an excellent analysis of the use of H1-B and L-1 visas by the Indian software industry as a competitive advantage. The paper undertakes both macro and micro-economic analysis to explain the importance on these visa programs to the Indian software industry's business strategy. Topics include the various visa categories and how they work, the heavy use of these visas by programming job shops, the importance of these visas to Indian IT firms, the importance of US clients to Indian IT firms, the importance of on-site access in the US for offshore work, current demand for temporary visas, the implications of the slowdown in the US economy on the Indian IT business, changing businesses conditions in the US, policy implications, and likely Indian responses.

HIRA, R. 2004. Offshoring of High Skilled Jobs: Emerging Global IT Business Model. ACM Job Migration Task Force Meeting Washington, DC. (Dec.)

Topics in the presentation include a definition of offshoring, why companies offshore, amount of work offshored, variety of work offshored, positive and negative impacts of offshoring, IT job dislocation, emerging global services business model, US visa policies, insourcing, winners and losers in globalization, critique of existing studies, and possible policy responses.

HIRA, R. AND HIRA, A. 2005. Outsourcing America. AMACOM, New York,NY.

Ron Hira is a professor of public policy at Rochester Institute of technology and head of IEEE-USA's visa and offshoring policy initiatives. Anil Hira is a professor of international economic policy at Simon Fraser University in Canada. The book presents an overview of offshoring written for the general public rather than the expert, taking a position that this phenomenon has and is likely to continue to cause serious harm to the United States. Topics include economic theories of free trade and competitive advantage (and their limitations), positions held in the public debate, how much offshoring is being done and to where, reasons companies send work offshore, the impacts on the US economy and the US worker, and how developing countries attract US jobs. A set of recommendations are presented.

HIRA, R. To appear. Does India's IT Industry Need Labor Mobility in an Age of Offshore Outsourcing? In T. Thatchenkery and R. Stough Eds..ICT and Economic Development. Edward Elgar, Northampton, MA.

This chapter investigates the importance to Indian offshoring firms of the ability to place their workers on the site of their US clients. It explains the critical dependence of this strategy on the US H-1B and L-1 visa programs, and the significant continuing revenue that the major Indian offshoring firms earn in this way. The chapter argues that shifting work overseas to countries including China and India has not yet eliminated the value of sending employees of offshoring firms to work on the client's sites in the United States, and it discusses the blended strategies of having both workers in India and the United States. US politics surrounding offshoring and visa programs is analyzed.

HOFFMAN, T. 2003. Job Skills: Preparing Generation Z. Computerworld (Aug.)

The article reports on a survey done by the magazine with 244 IT professionals indicating that they are not satisfied with the preparation universities are giving to people entering IT careers. The respondents wanted academia to teach more business skills, troubleshooting skills, interpersonal communication, project management, and systems integration. Efforts at several universities to give their IT students a broader education are discussed.

HOFFMAN, T. 2004. Demand for IT Contractors Rising Slowly. Computerworld (April 5).

A December 2003 survey of 364 IT decision-makers showed that 52% of North American companies will use a combination of internal training and IT contractors to make up for a shortage of IT skills in 2004, while 22% will increase internal IT staffs. Qualitative evidence is given of reluctance to initiate new IT projects even though they are being talked about as possibilities.

HOFFMAN, T. AND THIBODEAU, P. 2004. Wage Inflation Unlikely to Soon End India's Offshore Dominance. Computerworld (April 5).

In this brief article, the authors note that the labor costs are rising at around 13% per year and are thus expected to double by 2010. Despite that, and the fact that Chinese programmers earn 20 to 30% less than Indian programmers, it is expected that India will be the dominant outsourcing destination for some time to come. This is partially attributed to the deep labor pool. Approximately 290,000 engineering degrees are awarded annually in India, the majority in IT fields. Wage pressure exists in India, especially in fields with a shortage of practitioners, managers, and ERP experts.

HOPPERMANN, J. AND PARKER, A. 2004. Debunking Russian Offshore Myths. Forrester Research (June 4).

From the report's executive summary. In parts one and two, we discussed the criteria needed by end users to select a software development partner from a growing group of capable Russian offshore software development specialists and then looked in more detail at the nine companies that Forrester surveyed as representative of the capabilities of Russian providers. This third and final part discusses some of the perceptions and misconceptions that influence client-side decisions in favor of or against Russia - or, to a certain degree, other Eastern European countries - without regard to any specific company.

HOUSE, C. H. 2001. Careers in a WWW World. Internal Intel document.

House is director of Societal Impact of Technology for the Intel Corporation. This is a thought piece addressed primarily at human resource directors on three forces that are changing the current workforce environment: (1) the establishment of the virtual corporation, through greater focus on core competencies and outsourcing of other functions; (2) skill shortages in the workforce, especially those that are science based; and (3) shortcomings in the mathematics and science competency of American students. One section of the paper discusses India, mainly the rapid growth in its ability to produce exportable technological products and services because of the rapidly growing pool of science-skilled workers.

HUANG, G.T. 2004. The World's Hottest Computer Lab. Technology Review (June) (Available at www.techreview.com/articles/04/06/huang0604.asp. Accessed March).

This is a human interest story that describes the operations, research, and enthusiasm of a Microsoft Research Lab in China. The Beijing lab is a key part of Microsoft's effort to ensure its global future through research by tapping into and targeting the Asian market. A senior vice president of Microsoft Research is reported as saying that is it interesting how much of the research directed at the Asian market place is generally applicable globally.

HUBER, N. 2004. One Third of Firms Are Spending Too Much on Managing Suppliers. Computer Weekly (March 23).

According to a survey of UK executives by the outsourcing consulting firm Morgan Chambers, a third of the companies surveyed are spending 7% or more of their budget on managing their outsourcing relationships (both within the country and offshore). 23% are spending more than 10%. Morgan Chambers advises companies not to spend more than 7% for management. Some of the cost is attributed to micromanagement by the clients, which should not happen if the client trusts the vendor.

HULTEN, G., GOODMAN, J., AND ROUNTHWAITE, R. 2004. Filtering Spam E-mail on a Global Scale. In Proceedings of the 13th International World Wide Web Conference (May) New York,NY.

Abstract. In this paper, we analyze a very large junk e-mail corpus which was generated by a hundred thousand volunteer users of the Hotmail e-mail service. We describe how the corpus is being collected, and analyze the geographic origins of the e-mail; who the e-mail is targeting; and what the e-mail is selling.

HUWS, U., DAHLMANN, S., AND FLECKER, F. 2004. Outsourcing of ICT and Related Services in the EU. European Foundation for the Improvement of Living and Working Conditions, Dublin, Ireland. (Available at www.euro found.eu.int).

From the report summary. Based primarily on an analysis of a body of research covering more than two decades, this report defines the scope of offshore outsourcing and the services involved. It also covers issues such as the distribution of ICT service employment in Europe, driving factors of ICT service outsourcing, and current trends in offshore outsourcing.

HUWS, U. AND FLECKER, F. 2004. Asian Emergence: The World's Back Office? IES Report 409. Institute for Employment Studies, Brighton, UK.

Description from Web site. Recent press reports suggest that 'offshore outsourcing' to Asia will have a major impact on jobs in Europe. But what is the reality underlying these developments? Drawing on 59 in-depth case studies of eWork relocation, the EMERGENCE team explores the trends and the implications for managers, workers, and policy-makers.