RE: Oracle Corp. move to India

Hi All,

I believe this *is* already happening, i.e. the flow of Development contracts *outside* of Oracle. Other than that, I agree with all that has been stated. And not only in software, but in manufacturing, even high-tech (Silicon technology, including design, testing and fabs). And before we start bashing a certain country, let me state that (a) various sectors flow to various countries (manufacturing to China/Taiwan, Design to S'pore, IT Development to India, for e.g.), although there is a disproportionate flow as far as IT goes (b) I have also seen a 'reverse flow' (East to West), so this is all not one way.

First, let me explain (b). I used to work in the Far/Mid-East for Petroleum companies who found that employing Western Petro-technical talent locally was costing a lot - there was the 'hardship' as well as relocation/travel costs on top of better-than-equivalent salaries. Most of this talent was working on Siesmic logs that were extracted by people on the field and sent back to the office, with no need to visit the field itself. Management 'relocated' the talent back to the base western country, setup fast networks to ship these logs, used the Eastern daytime to generate these logs, ship them immediately, and process them during the Western daytime (Eastern nightime), thus reducing both cost _and_ turnaround time. Project timelines increased dramatically. Of course, Email, Voice and Video-conferences were heavily used...

As far as IT Development goes, the way I have seen it works is this: Company XYZ from country ABC locates a few *senior* people with the appropriate communication and socio-cultural skills onsite to front-end the Development effort. The bulk of the team works offshore using specs generated by this smaller team. Works well - hourly rates are low, turnaround/fixes are quicker, and all comminucation and the human-element, touchy-feely provided by the smaller onsite team. But the bottom line is of course cost. I have seen this model work way back in '86 when I was on the other side of the pond (so to speak), so this concept is nothing new.

Oracle has had support centers in UK, India, Dubai (I think this has been relocated to India), Australia, etc for a while ('chase the Sun'). The Dev Center is new, and I heard that most of this will be Oracle Applications...

What one has to do though is to watch 'Production Support' activities being farmed off. Now _that_ would *really* worry me... But I will post a list of things that I think may work against this if someone is interested.

Sleepless in San Jose!
John Kanagaraj
Oracle Applications DBA
DB Soft Inc
Work : (408) 970 7002

Listen to great, commercial-free christian music 24x7x365 at http://www.klove.com

• The opinions and facts contained in this message are entirely mine and do not reflect those of my employer or customers **

> -----Original Message-----
> From: Senthil Rajamanickam [mailto:senthil.odtug_at_attbi.com]
> Sent: Wednesday, July 31, 2002 5:19 PM
> To: Multiple recipients of list ORACLE-L
> Subject: Re: Oracle Corp. move to India
>
>
> I do not know how many of you actually work for Oracle, but for others
> (Developers who use Oracle Technology) this I do not think is
> immediate
> cause for concern. There is no way a team half the world away
> can solve the
> business problems of a company in the US byt creating IT solutions.
>
> Oracle's move is the inevitable result of the post bubble tech-wreck.
> Software companies can no longer sell anything and everything
> they build and
> to maintain their margins they have to reduce expenses. And
> anyone who lives
> in Bay Area knows it is extremely expensive to maintain an army of
> programmers here - the cost structure being approx $200,000
> per developer
> per year.
>
> Ellison delivered his warning at Appsworld itself saying that
> the Bay Area
> will have much less technology companies and those that are there will
> resort to offshore development models.
>
> But, as I said in the first line, it is not of 'immediate'
> concern but in
> the medium term it will be. Right now the mantra seems to be
> BPO meaning
> accounting, finance and similar back office work is taking
> flight from the
> US.
>
> While this is the inevitable logic of 'Market Economy'
> (politically correct
> for 'Capitalism'), unnfortunately there does not seem to be a coherent
> strategy on the part of the US government to deal with the
> social impact.
>
> Sorry for being so off topic on this list...
>
> ----- Original Message -----
> Sent: Wednesday, July 31, 2002 1:40 PM
> To: Multiple recipients of list ORACLE-L
>
>
>
> Heard on the BBC radio at lunch that Oracle Corp. is moving alot of
> operations to India, 1800 new jobs.
> ===============================================================
> Ray Stell stellr_at_vt.edu (540) 231-4109 KE4TJC 28^D

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Author: John Kanagaraj
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