Over the past two decades, networking has been severely limited: it simply could not keep up with new demands from businesses in an increasingly digital world. However, that is all about to change thanks to the creation of software-defined networking, or SDN. Part of an ongoing wave of “virtualisation” in the IT industry, SDN allows people (particularly businesses with large IT systems) to control network behaviour through a handy piece of software, instead of having to go into the network infrastructure and alter things manually.
I was thinking of what I could say about the outsourcing market at the end of 2016. My initial thoughts were about how I feel that the term itself is dying out. Companies are much more likely to be exploring partnerships today.
The Register likes to put the boot in when they comment on IT stories, so it was no surprise to see a recent feature about Fujitsu in which The Register summarised that Fujitsu needs to "get a move on" if they are going to transform their business to meet the expectations of customers today.
Not too long back, many global IT service providers were known to move delivery of IT services of their clients to offshore locations (like South Africa, Latin America or India) without informing their clients. This was seen as an internal lever to make customer contracts more profitable in a multi-year deal as services were first stabilised in a high-cost onshore delivery location before being shipped to an offshore location.
For years, the outsourcing world has been buzzing about reshoring (or "backshoring"), taking the jobs we sent offshore years ago and bringing them back to the US and Europe. Low wages, cheap property, and favourable taxes made offshore manufacturing very attractive. But in recent years property values rose, staff turnover increased, and wages just keep heading up. Despite weakening economics, offshore still made sense. Until today!
Hard to believe half a year has gone by so quickly, but Outsource finds itself once again at a SIG Summit – taking place this time round in delightful (though, today, surprisingly drizzly) Carlsbad, California.
For as long as I can remember, arguments about outsourcing have played a part in the US election cycle. In the final stages of the presidential election the two candidates will make promises they can’t keep and declarations about how bad outsourcing is for the American economy.
Last week, Delta Air Lines faced a technical hitch. On the surface it wasn’t an enormous problem - a power outage at their Atlanta data centre caused a switchgear to fail (like a circuit breaker in your home). However, the backup systems didn’t come online correctly and the failure of this one piece of equipment then caused a complete shutdown of the Delta IT systems globally.
With the United Kingdom set to leave the European Union, the impact on the Polish outsourcing market looks likely to be both positive and negative. The full extent on outsourcing is yet to be determined, but some predictions can be made based on various scenarios.
If Polish talent leaves the UK