Forbes: Outsourcing "here to stay"

We've only just begun - to be outsourced, that is.

An article in the April 17th Forbes magazine makes this point. Not only is offshoring here to stay, its growth and scope is accelerating. Consider these points from the respected research firm Gartner:

• Offshore IT spending will triple in six years, and near $60 billion by 2010
• Engineering Design "will be the next big wave of global sourcing options"
• Spending on outsourced R&D and engineering will grow 10x in the same period

The reason? Cheap labor. $10,000 can hire an educated India worker vs. $40,000 for an entry-level U.S. worker.

Initially confined to data entry and call center work, the expansion of scope is not limited to software development. Some corporations outsource entire functions: IT, accounting or other backoffice work. More sophisticated services are now targeted: designing chips, auto parts and aircraft wings. SPI Technologies in the Philippines is doing legal analysis for a large U.S. legal research firm.

The article is free, and available to nonsubscribers:
http://www.forbes.com/free_forbes/2006/0417/074.html

Technorati Tags: layoffs, outsourcing

Back to the Future

I want to better understand what I like and what I'm good at. To do this I'm going "Back to the Future" courtesy of some old journals kept from some prior career crossroads. I've learned that the things I'm best at, what I like to do, stays fairly constant. My strengths now are the same as when I was young. I think this is true for most people - my brother loved to write in 8th grade, and 30 years later he's an author writing books for readers in 15 countries.

I was a systems manager for 5+ years earlier in my career, loving it for the first three years, then gradually growing disenchanted as the job changed. Eventually I left management and returned to the technical side, which was a difficult decision at the time. Looking through the journals I kept then, it brought back a lot of things I had forgotten. It's an amazing thing to be able to go back in time and see what the 20-years-ago-you was thinking. My personal time capsule.

Here's some notes from that time that should help me focus down my job search in the present:

Likes:
Problem Analysis - solving tough problems
Intellectual challenges - mastering a body of knowledge and then applying it to some end
People style - a positive, helping approach
Macro-level technology / business problem solving
Direct people management / team building (small team)

Dislikes:
Organizing / process (nothing to solve or figure out)
Competing with others / Interpersonal confrontation / aggressive behavior (not my style)
Resolving people conflict
Handling minor details
Performing in hostile environment (need positive environment)

"Like dealing with technical solutions to business issues. Dealing with 60% what, 40% how."

"Like getting a task can "get my teeth into". Ideal is something I have complete responsibility for an ownership of. I can make the decisions as how best to do it (vs. having the solution dictated)."

"Like role of Systems Analyst, mixing business / technical solutions."

"I really loved having different situations to analyze, problems to figure out."

"Technology may be less important than working on something important that I believe in."

Resume Redo

I need a new resume. It's not bad actually, and it accurately details my positions and accomplishments. The problem? It's a great resume for a Web developer, but I'm at a competitive disadvantage for that type of job. I need to focus on the job opportunities I'd be best at, and my resume better reflect that.

Since I've done Web development for the last six years, you'd think that would be the natural thing to shoot for. But the Microsoft technology I'm best at, Active Server Pages (ASP), is no longer current web technology - ASP.NET is its replacement - and I haven't worked with that. I could land ASP jobs if they existed, which apparently they don't (at least I couldn't find any in this area on dice.com). Large-scale web development, the advertised kind, seems a reach at this point.

However, niche opportunities in web development might still be possible. Individual business units, internal intranet applications, small-business applications - in these cases a solution could be crafted from scratch and ASP technology might be a good fit. (I also know PHP, the dominant scripting language on the Internet.) So in some cases there might be a match.

But obviously my current resume needs refining. I need to determine the niches I'm most competitive for and have my resume reflect that, even if I need different versions slanted toward each niche.

Just Another Day

I was busy today. The routines we use for employee authentication, supplied by another bank unit, needed upgrading to a new release. Program changes were necessary, including to our most sensitive access request process. I did my final testing, rolled the changes into production and then had to wait for the Web server conversion at midnight Eastern time. Just finished testing, and it looks like the conversion went well and everything is back up.

It all felt good. It felt like a normal day - and it was - but it was my last normal day.

From this point forward, to aid in the transition, I'm pretty much freezing my application code. I'll try not to make any changes, unless it's really vital. And in a week or two, they'll be taking over responsibility for the program maintenance.

It hasn't totally registered yet. These Web applications are my babies: created by me, maintained by me; I have lived and breathed them for five years. Not being part of all that is still hard to fathom. I was respected, expert in these applications, and enjoyed that position. It was challenging work, and work that helped others at the same time.

I am so going to miss this.

Helpful Inspiration

My wife made a big mistake today: she read my blog. She arrived at work early, and decided to catch up on my new blog entries before the day started. "That's the last time I do that - I was depressed the whole day!" (She was laughing when she said it, so it couldn't be that bad.) Her new resolution is to only read it at the end of the day.

It always inspires a writer to get a heartfelt reaction from his readers...

Apparently my parents were similarly inspired, because my father turned around and wrote me a three page letter to cheer me up. It was a beautiful letter, so maybe I need to continue on the Dark Side to get some more! My father mentioned some words that have always inspired him, and I thought they might inspire others as well, so here's what he wrote:

"I want to give you some pointers that will help your mental outlook. These are on a little card that I have carried in my wallet for over 40 years. They were written by Henry C. Link, a practical psychologist and one of my favorites. Here's what it says on my little card...

Practice Thought Control:
When you catch yourself starting a stress emotion, stop it and substitute a healthy positive thought. Example: "I'm going to keep my attitude and thinking calm and cheerful - right now!

Change Your Thoughts:
Equanimity (Let's stay calm)
Resignation (Let's accept this setback gracefully)
Courage (I can handle this - and more.)
Determination (I can turn this setback into victory)
Cheerfulness (Bowed but not broken )
Pleasantness (I'll keep my attitude pleasant)

I hope this helps you as it has helped me."

Thanks, Dad, it did; maybe it will help someone else as well.

Better to Accept?

My impending layoff from the Bank has been a brutal shock. I've been using this blog to examine the human side - the all-too-natural anger, betrayal and sorrow - that is a byproduct of modern corporate economics. I'll of course continue to examine this human side going forward; but from a personal standpoint, there are other considerations I haven't touched on.

I'm not the most spiritual person in the world, but maybe, for whatever reason, I was not meant to spend the rest of my working life at the Bank. Losing one's job is certainly an effective, if crude, means for forcing one to move on. And moving on is maybe the whole point: it's time to do something else, time to help somewhere else.

What if I simply accept what's happened? A radical idea, that. But accepting - not fighting, not railing against fate - could be a lot healthier. Maybe I should spend less time worrying; instead, trust that, for me, it's for the best. For reasons that are ineffable my path lies elsewhere; my job is to figure out which fork to take. Standing still on the trail - getting upset about the fate that has placed the fork before me -is not going to get me anywhere.

Don't Bother Me - I'm Thinking

I need a break. Unfortunately there's no break from not having a job, it's always there, always a fact of life. Now I am very analytical - solving problems is my forte - and when I have a problem I'm constantly thinking about it, turning it over, looking at it from every angle. Typically I figure it out, I fix what's wrong, and move on.

But facing the prospect of unemployment is not your average problem. It's huge, emotion-laden, and touches everything. Easy solutions? Forget it. In fact, "the solution" is out of my control unless I start my own business (and even then your customers are out of your control). This is a Monster Problem, the Perfect Storm Problem, the, well you get the idea...

But giving up is not an option either, so I can't stop thinking about it. I'm preoccupied always; there's a constant corner of my mind thinking away. My wife comments that I'm not all here, my thoughts are somewhere else. The good thing: I'm positive - thinking about possible solutions - vs. worrying (maybe that comes later!). Still, it's an immense task.

I'm going to wear myself out at this rate, however. And if I can't keep myself mentally fresh I probably won't accomplish much anyway. So today I'm taking the family out to the theater to see "Bye Bye Birdie", which is being done by one of the local community theater groups here. It will be good downtime. I will try to just enjoy the play - and stop thinking!

Good Timing

Got good news from one of my Jacksonville teammates Friday: she had found another job in the Bank. Not only that, but she will be doing project management, her preferred career direction. She is pregnant, going out on leave Jun. 10th, and was losing hope that she would find anything in time. Her last day with our team is April 28th.

But on a personal level I was a little down after hearing this news. My prospects for finding something else in time within the Bank seem slim, and this cast that contrast in bold light. I left for lunch feeling discouraged.

I had a voicemail when I returned: my boss's boss had mentioned my name to one of his managers, and he was calling to learn more about my background and what I was interested in. He was easy to talk to, and although there was nothing in his area, he gave me the names of several contacts. He also mentioned my name to a buddy of his that has some openings.

This gave me a little hope - and what fortuitous timing! I sent my resume to these contacts and a few more that were related. At this point I've really got nothing to lose. Actually, even if nothing comes of them, having some more irons in the fire does wonders for my mental outlook.

Mystery Solved

I found out an East Coast teammate was laid off the same day as me; his last day is April 30th. There's no logical reason for this, with our help desk scheduled to be "transitioned" to the India people in only two months. For the sake of 60 days, they are risking the quality of the India transition and customer service in the meantime, because normal problem volume continues but there's fewer and fewer people left to work the tickets.

Why? Because our systems management is scrambling to fill a $5 million budget hole they had not anticipated (yours truly will be making the ultimate contribution to this noble effort May 31st). But please - that amount of money is too small to make a dent in our financial picture. (Today the Bank reported first-quarter profit of $18 billion).

Here's the mystery: why all the fuss? Yep...some manager's bonus is at stake: he might get 10% less! That smells about right. So my teammate, myself and about 30 other people will fall on our swords. But by golly that budget hole will be plugged!

Technorati Tags: layoffs, outsourcing

Selling

"Did you ever consider starting your own business?" I asked a friend last week who had been out of work for a long period. No, she never had: she's no good at marketing. She had no interest in the constant "selling" necessary for success. I had to admire that answer, because she knew herself and despite difficulties stuck to what she's best at.

My sales inclinations are not much better. This is somewhat embarrassing coming from a lineage of salespeople: my grandfather, father, uncle and cousins all have had jobs involving selling; however, my nature rebels against persuading people to do something for my personal gain.

Helping people is what I'm all about - I can even be quite persuasive when I think someone can benefit from something I know about. But if I have to do person-to-person selling for a cause, even a good cause, it's going to be hard for me to be successful. I'd be fighting who I am.

To put it mildly, this could be somewhat limiting to the idea of running a business. I would need an Internet-type business that could succeed without me becoming a salesman; this is possible: I've seen examples. However, this could prove to be an elusive concept, and I may, like my friend, end up choosing the employee role.

But in any case, I don't think I'll be getting into the insurance business anytime soon!

A Real Pain

This whole experience has been a pain - literally. I, who rarely gets headaches, have had a fairly constant dull headache for five weeks now. Coincidentally it started a few days after the Bank unveiled their new "People Strategy" (that really is what they called all this outsourcing!).

Last week the nurse saw me and had me take three Advils 3x/day, in an attempt to break the "pain cycle". Apparently the nerves that cause headaches can get inflamed just like muscles and then stay inflamed for awhile. It felt a little better for a few days but then returned.

I saw the doctor again today to follow up. To try to better determine if it's stress, he prescribed a mild sedative to take when the headache is flared up. If it then goes away, that would be a good sign stress is the culprit. I have to be careful when I take it because I can't drive for six hours afterwards (and probably will be less than super-productive at work!).

So I'll try this out. Truly this headache thing is adding insult to injury, but I'm finding the body does weird things under stress.

The "Package"

If the Bank has "Higher Standards" for anything it's employee layoffs. There's been thousands upon thousands over the past few years, so surely practice makes perfect. Alas, I'm finding that's not the case.

It's been two weeks since I found out I was getting laid off. Employees call this "getting the package" - as you get the news you are handed a thick package with all the severance details. I never got that package when I was notified, but I figured it would come in a few days. I'm still waiting.

I inquired last week of the Axing Manager regarding my severance package, only to find he was on vacation (serendipitous timing). Okay, no problem, there's always HR. If you can depend on anyone in these situations it's Human Resources. So I sent a note to our HR guy. He took four days to get back to me, and then scheduled a 6:30 AM meeting with me (didn't bother to check I'm in California, not the East Coast). I graciously declined that meeting, and now will wait a few more days to see him.

But not to worry: I could call the 800-number for internal personnel questions, he said.

That's what I like about this place: the personal touch.

Technorati Tags: layoffs, outsourcing

Other Options

Getting laid off can play with your head in strange ways. Here I am, having worked as an employee for the last 30+ years, now having visions of running my own business. Why? It's a gut level response to suddenly losing your job: you really don't want to go through that again.

But it's even more fundamental than that: I've lost faith in the traditional model of employer and employee. There's so much that's out of my control. Given a choice I would rather put my trust in me. That's the nice thing about your own business: you run it, you make the decisions. Odds are you won't outsource yourself!

I'm really not the ambitious, competitive type; I'm not out to take on Donald Trump. I would just like something under my control that would pay the bills and be fulfilling.

Alas, these things don't grow in trees, and often may be worse than a regular job. So I'm in the process of sorting these things through so I can make a reasonably informed decision. I wouldn't want to jeopardize our financial security through inordinate risks. But if it takes a while to find a job I need a Plan B anyway, so it's worth thinking about.

Friend survives recession layoff

Had lunch with a close friend yesterday. She also belongs to the large and growing club of Laid-off Bank of America People, was out of a job for over a year, but is now a manager at Wells Fargo.

She was unemployed during the last recession: there were no jobs to be had. It was a pretty scary time. Her unemployment was going to run out - as well as her severance - so finances were a huge concern. She didn't panic though; instead she researched her benefits situation intensely. She discovered California would extend her unemployment benefits if she enrolled in a career retraining program!

The health-care field attracted her (although her background was Financial Services) and she took a several month certificate program. During that time her unemployment benefits continued. She figured she could either become a health-care worker directly or continue in the computer field in a health-care setting.

Ultimately, the health-care worker option proved less than desirable, and as she finished her certificate the recession had started to lift. New jobs were coming on the market, and she quickly was hired by Wells Fargo. However, the retraining program kept some money coming in, and perhaps more importantly, kept her focused on a positive goal.

Being smart and adaptable helped her keep her cool, and ultimately resulted in a new job.

Focus on "I Can's"

I'm trying to focus on things I can control to preserve my sanity these days. I'm not always successful, but I find it helps when I have the discipline to do it. This blog is an example. I have no control over the powerful emotional issues that crop up daily; however, expressing my thoughts, writing them out, takes away some of the sting.

I can't control if someone will select me for a job. But I can work on crafting a solid resume, cover letter, etc. I can contact many people I know to publicize my situation. I can continue to upgrade certain skills so I am better prepared for a new job.

I need to focus on the "I can's" versus the "I can'ts".

Free to Look

Heard about a possible internal opening within the Bank from one of the managers on my floor. It's for a business analyst-type position, so I sent an e-mail over with my resume. Perhaps something will come of it.

When you are laid off, you are "free to look within the Bank", in hopes of finding another internal position. If you are expecting much help with this search process, you will be sorely disappointed, for you're pretty much on your own. There's an online job openings system that you can apply to, you can hunt around for openings, but it's up to you. The ideal: a manager that knows you - championing your cause and beating the bushes - well, that's a dream.

The large organization doesn't know and doesn't care about the individual. If your number comes up, no alarms go up, no red flags appear; nothing can stop the right manager from committing gross injustice. The Corporation is utterly indifferent to your plight. However, if you find something else, you can be immediately restored to active status as well. It's just another code in the computer!

Personal this process is not; but discouraging it is.

Wimping Out

I've been outsourced. And now I have to train the fellow from India in my job. This may be horrible, but it's great fodder for this blog; here's my chance to vent my outrage at these Indians and what they are doing to us. A big Web audience and sterling blogging credentials are mine for the taking.

Only one problem: I'm a wimp. I like the guy.

His name is Ananth. He's been very pleasant to work with so far: good-natured, respectful, polite and courteous. Ironically, he had not been told I was being laid off, and had innocently asked where in the bank I was moving on to. He was somewhat taken aback upon learning the truth and genuinely sorry.

So forgive me for not joining the "bash India" crowd. I just don't have it in me. The fault lies more with our own country's callous, shortsighted business practices.

Vacation? FUHGEDDABOWDITT!!!

When you have school-age kids, the school year dictates your vacation time. Planning is easy: there's Christmas, Easter week and Summer. That's it. (Of course that guarantees you'll have lots of company from other families and few travel bargains!) Normally we take an annual family vacation during Easter week - something we've done for the last 13 years. But not this year.

We had planned on getting away next week. But getting laid off can really put a damper on vacation plans! The economics at this point make it a costly luxury. If I forego the vacation, when I am laid off after May I will get paid for any vacation time accrued but not used. It's not much, but it could be a couple more weeks pay, and that's worth the sacrifice.

And heck, I may have more vacation time than I know what to do with starting in June. So if it's a choice between relaxing on a scenic vacation or spending the week on the phone training my friends in India, you'll know my decision. Uh, remind me again...please? Oh yeah. FUHGEDDABOWDITT!!!

"It's not about performance..."

"It's not about performance", I was told as I was being laid off. These words were meant to be a comfort: I wasn't a poor performer, I didn't screw up, it's not about me. "In fact", he continued, "we can't even talk about performance". That caught my attention. Even in my distracted state, the "L-word" came to mind: lawyers.

It didn't used to be this way. Companies followed Darwin's laws and it was "survival of the fittest" when downsizing came. The problem: how do you win in court over who is "fit" versus "not fit". Answer: you don't. But corporate lawyers aren't stupid and they learned their lesson: if you focus on the function - the function is going away, the function is being outsourced, etc. - you have a winning argument.

And so today no employee is safe. If you're in the wrong place at the wrong time you're gone, even if you've walked on water. Think of it as a giant game of Corporate Musical Chairs. You may have survived this time because there was an empty chair. But sooner or later the music will stop, all chairs are taken and you are left standing. And then, so sorry Mr. Walk on Water, it's not about performance and you are history.

God bless the legal profession. Where would we be without them?

Technorati Tags: lawyers , outsourcing

You Have It or You Don't

Technology job openings sometimes seem like an exclusive club: you can only get in if you have exactly what the membership committee is looking for. The job requirements always feature a long list of acronyms (JAVA, JCL, HTML, etc.) detailing the precise technology background the candidate must possess. If you don't happen to have that technology mix, you usually won't be considered for the position.

You'll never see a technology job posting like this: "Looking for experienced technology veteran with strong analytical and problem solving skills that has demonstrated flexibility in adapting to new technologies. Will train as needed." In technology either you have it or you don't. No one wants to be bothered with training. (Of course that begs the question: if you're not born with the knowledge where does it come from? Business replies: college.)

The result: a constant cannibalization of people in the technology field. People enter the field fresh from college, imbued with the latest technology, and at the short end of the pay scale. They work like dogs for 10-15 years, by which time there are new hot technologies that they are unfamiliar with (and they now have a more inflated pay scale.) Their "legacy"jobs are then outsourced, the hot jobs go to the new graduates and the cycle begins again!

Dig! Dig!

Well, the good news is I was outsourced but it doesn't take effect for 60 days. The bad news: my job is to train the folks from India that are inheriting my job. Kind of like handing the condemned man the shovel.

I create Web applications used internally by the hundreds of users of our data warehouse (massive databases used for marketing analysis). I'm quite proud of my expertise in this area and the usefulness of what I've created these past five years. I'm discouraged that I have to leave all this behind. My heart and soul went into this work and I'm sad to be torn apart from it - kind of like a work divorce.

And I will be leaving it in the hands of people that know very little about our data warehouse environment: they don't even have an ID to log on with. But not to worry, I'm sure our management team knows what they're doing!

Moving on

After a couple days I'm beginning to adjust to the changes since I got my termination notice. Word has gotten around fast - I only told a couple of people and with that the news was carried by the grapevine throughout our area. A number of people have stopped by and said how sorry they were, and that has meant a lot.

It's a strange feeling working out this 60 day transition period until I'm officially gone. I'm still here, and yet… For example, the East Coast team I belong to always has had their weekly staff meetings at a Pacific TimeZone-friendly time, at least until today. Apparently I'm no longer invited because the new meeting time is 6:30 AM Pacific. Already others are moving on...without me.

I am no longer the same as everyone else - they are employed here in an open-ended job, whereas for me the clock is running down. I no longer feel like a Bank "associate" in spite of the technical fact I am till the end. I walk around my floor, the Tech Center, feeling detached from it all. To the unknowing I look like any other employee, but in a few weeks I'll be gone.

Technorati Tags: layoffs, outsourcing

Hello Goodbye

Nine-thirty Monday morning. My boss's boss was on the phone and wanted to speak to me. When? "Now would be fine."

No good could come from this. He was based out of Charlotte, North Carolina, and had no reason to be in California today, especially since he has only one employee out here - me.

My heart racing, I proceeded next door, and entering into his guest office heard my boss (also Charlotte-based) on the speakerphone. At that point I knew: my 28 year career at MegaBank (sic) was at an end.

Sure enough, hewing to the classic format, he monologued about the extreme financial difficulties (last quarter the bank earned many billions) that led to this decision. Some roles were being deemphasized and outsourced to India, but the good news is I had 60 days before this took effect so that I could train the people taking my job.

Most of the rest I didn't catch - I felt like an observer seeing this happen, like watching a movie, my eyes and ears way ahead of my brain in registering my termination. Instead, I was getting snagged on little irritants: he mentioned my "27 year career" and the possibility of being "bridged to retirement and a full pension" (they threw out pensions 20 years ago here). At least if they were going to lay me off I deserved a veteran Grim Reaper not an amateur!

I broke it to my family next. It was not totally unexpected - working in a large organization it seems like there's an annual wave of layoffs - but up until now I had been one of the lucky ones. So although they were surprised, they knew it was one of those things that could happen eventually.

From a family standpoint the timing is awful. My oldest son, 18, is going to college this fall, and immediately realized his first choice school would no longer be feasible financially. My younger son, 14, is quite excited to enter the private high school that all his classmates are going to. The combined education bills we are facing will make this the most expensive four years of our lives. My wife has a part-time job with no benefits, so we are dependent on my no-longer-existent job.

Normally a sound sleeper, I lay in bed totally awake, overwhelmed with scenario after scenario running through my head. I got up, watched TV for awhile, but nothing helped until my brain finally gave up around 3:30 AM.

Technorati Tags: layoffs, outsourcing