Wednesday, March 03, 2004

The 'Unforeseen' Peril -- or Foreseen by Some

The following Business Week article hits the nail on the head for me. As my employer constantly tries to reassure us that the key software development roles will remain in the U.S. (and while we desperately want to believe this), there is considerable un-ease. This link (and the following excerpt) points out that the un-ease is not totally unwarranted. I also liked this quote as it underscores the title of this blog.

What upset the potential backer? In large part, it was the sense that not only were the manufacturing and development services based in India, but that the company's most important knowledge -- software and engineering savvy, not to mention its development expertise -- also had departed the U.S. Says Rocci: "All the knowledge about how to do things had moved over to India." The investor's withdrawal scuttled the former employees' proposed deal to acquire AM's products business did so because he saw that outsourcing had essentially stripped the concern of perhaps the most important asset of them all -- its knowledge.