Re: [SLUG] Finding Jobs/ "body shop"

From: Kenneth W Hansen (khansen46@yahoo.com)
Date: Sun Apr 27 2003 - 10:15:07 EDT


I had originally kept this out of the forum (under
advisement), and just posted it in the Jobs area, but
since the topic has been brought up here...
The idea of a "body shop" is Outsourcing. The primary
problem, as many of you have already stated, is $.
Companies want to pay the least but get the most.
That's business. In the corporate environment, the
bottom line is all that matters. I don't agree with
sending the work overseas, but that's the way it is.

I believe there is a two-fold solution:

1) Sell the Linux solutions. Make companies see the
benefits of running a more stable, reliable system, as
well as the major bucks that will be saved by ridding
themselves of the MS tax. Not everyone will be
convinced, but there would be enough to make Linux a
major presence in the marketplace. That feeds on
itself, and creates even more demand.

2) Outsourcing. This is rapidly becoming one of the
major trends in the IT industry. It's been around for
years. A lot of major companies are doing this for
their payroll and benefits. I've been reading a lot
about this trend carrying over into the IT sector.
The problem is not so much that businesses are
shipping their work overseas, as it is that they want
an outsourcing solution that isn't readily available
here (at least not to my knowledge, and I've looked
for them). At a comparable cost level, given the
choice, I think a lot of companies would keep their
business in this side of the water.

Now, "comparable cost level" doesn't necessarily mean
"the same cost". It's value for the dollar. There are
other services that go along with the basic
outsourcing that make it more profitable for the
outsourcing company (higher billing), and more cost
efficient for the business (more services provided).

The company I currently work for leases server space
from a server farm in Colorado. It is a SQL server
with a GUI web-based front end. This is the core of
our entire business. We have a server on site for
email and data storage, but, in all reality, we can
run our entire business with nothing more than
internet access.

Now, IT outsourcing costs jobs at the company level. I
realize that's not an ideal situation for the IT
personnel on site. However, business is business. A
company will find someone to provide the solutions
they want and need. At this point, the majority of
solution providers that cater to the current needs are
in other countries. If there were domestic providers
available, I think it becomes a no-brainer.
You go in and do the conversion: $ saved by
eliminating the current licensing fees. Even paying
the support fees to Red Hat or some of the others is
by far cheaper. Then, you provide server space, as
well as the maintenance of the servers. Throw in
custom reporting and forcasting/scheduling services,
and you've got a pretty impressive package to offer.

It's a known fact (at least in the Linux community)
that a Linux system administrator can effectively
manage more Linux systems than a MS sys admin can
administer in a MS environment. I also know, from my
own professional experience, that the majority of
reporting functions can be automated, and that
forecasting/scheduling, once properly implemented, can
be done with minimal personnel. ( I have seen
first-hand the waste that goes into hiring a full
reporting staff in some businesses).

The call centers I've been affiliated with tend to set
up full-blown workstations for each employee. The
reasoning is, it's no cheaper to set up thin clients
since a licence would be required for each connection
under the MS environment. Computers can be purchased
rather cheaply with MS pre-installed.
Within a Linux thin clien environment, the savings
would add up to a tremendous amount between the
licensing and cheaper hardware. On E Bay (I'm an E Bay
junkie) there have been a vast selection of thin
client boxes going for $20-$30. Don't get much cheaper
than that! And now you've cut the administration down
pretty much to just the server. Only the server to
protect from viruses, and protect from power outage
damage. Work smarter, not harder.

I don't see any reason why an outsourcing/solutions
company set up within these guidelines couldn't
provide a cost effective solution to the needs of
today's businesses, as well as provide a pretty
healthy income.

I'll stop myself now, lest I start rambling and put
everyone to sleep. (As you can tell, I'm pretty
passionate about the subject)

Ken

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