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- Newsgroups: comp.software-eng
- Path: sparky!uunet!tcsi.com!hermes!miket
- From: miket@hermes.tcs.com (Michael Turner nmscore Assoc.)
- Subject: Re: SE going offshore?
- Message-ID: <1992Nov17.005011.2920@tcsi.com>
- Sender: news@tcsi.com
- Organization: Teknekron Communications Inc.
- References: <1992Nov13.142754.12335@ornl.gov>
- Date: Tue, 17 Nov 1992 00:50:11 GMT
- Lines: 44
-
- In article <1992Nov13.142754.12335@ornl.gov> jov@styx.ornl.gov (Judd Jones) writes:
- >
- >Yesterday, Rustum Roy, Professor of Materials Science at Penn State,
- >gave a lecture here entitled "Is American Science Policy the Enemy
- >of American Technology?" (He concluded that it is.)
- >
- >One of his many claims was that just as the US has virtually lost
- >the DRAM industry (global market share down from 100% in 1976 to
- >15% today), it will also lose the software industry.
- >
- >His basic argument is that there are plenty of clever, well-trained
- >people in developing countries willing to work for less than their
- >US-based competitors. One example is the HP software shop in Bombay.
- >It will be economically inevitable that this labor-intensive
- >industry will be exported to places where labor is cheap.
- >
- >What do you think?
-
- The US lost the DRAM industry in part because the US wasn't up to
- the investment required to produce quality parts in time. Maybe
- Japan dumped, maybe it didn't, I never did figure that one out.
- I was writing RAM diagnostics during this time, and the only reason
- we used any American-made parts was because the vendors were leveraging
- off of CPU parts. Otherwise, we would have just used Japanese parts,
- because we rarely had quality problems with them.
-
- I don't want to get into the old flame-war about the propriety of the
- "factory metaphor" in software design, but I think the two cases have
- some major differences that make moving software off-shore not quite
- inevitable. Opponents of the factory metaphor say that the construction
- project is the better point of comparison. However, in the case of
- software, we are talking about buildings that have a negligible
- transportation component, unlike your average office building.
- But We also don't (yet) have a commodity software components market,
- as we do for ICs, so that analogy also fails.
-
- Still, it couldn't hurt to invest in automation and in quality
- improvement in software, just as it would have helped the US DRAM
- industry to invest in automation and quality improvement in IC
- fabrication. I expect some erosion unless this happens. But I
- don't expect the sky to fall. Or at least, not very fast.
- ---
- Michael Turner
- miket@tcs.com
-