Keeping IT jobs in the U.S.

Recently, I got an e-mail from Dave Hoerman, who has worked in the IT industry since 1985 as “a software tester, developer, and system administrator for just about everything,” as he puts it. He is concerned about reports that IBM is considering moving IT jobs overseas to China and India. He asks: “Can any of the remaining American IT companies be successful with a pro-American developer attitude?” Judging from the e-mail I get and what I read in magazines (including InfoWorld), Dave’s concern is shared by American IT workers, employed and unemployed alike.

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IT professionals generally look for the best IT solutions at the lowest cost, regardless of globalization. But with the recent movement of IT jobs to lower-cost overseas locations, many American IT workers are reeling. Dave closes his e-mail: “As a former IBM supporter, I am now looking for a company that can be competitive by employing American IT workers. Maybe I will become a Microsoft supporter after all.”

The globalization of IT creates all sorts of mixed feelings. For this Linux and open source-loving CTO, Dave’s pro-Microsoft reasoning stopped me in my tracks. It’s an interesting train of thought that I hadn’t considered. Microsoft recently announced it will be filling 3,000 to 3,500 new jobs in the United States and spending $6.9 billion on R&D in its 2004 fiscal year.

The people I meet who work for Microsoft all seem quite happy. They love their work and, by most accounts, they are well-compensated. Microsoft sells products at relatively high margins (which open source fans, including me, complain about constantly), but it returns a profit (which is what a business is supposed to do) and it invests considerable money in R&D and HR. To some degree, the same can be said of other American companies such as Oracle and BEA that sell high-margin software, although Microsoft is probably the ideal. Say what you want about Microsoft, but it is strong and it is hiring.

IT workers concerned about their jobs being sent offshore should reflect a bit on the economic dynamic of Microsoft. Most people who choose not to buy Microsoft products do so because they think Redmond’s wares are too expensive for the tasks they perform. For most server tasks, Windows 2003 is a solid piece of software, but many Linux-savvy IT managers don’t want to shell out a few thousand dollars when Linux is free. Open Office users don’t want to pay a few hundred dollars for Microsoft Office, so they use the “good enough” open source office suite. IT managers make these kinds of decisions every day to save money, but it’s the same basic line of reasoning that drives American IT jobs offshore. The cost of running a business should be as low as possible, and any reduction in IT costs (including labor) helps the bottom line.

I’m not even remotely suggesting a movement to buy Microsoft, Oracle, or BEA products to support American IT workers; I don’t expect these companies to launch such a campaign any time soon. Globalization is a confusing issue for IT professionals responsible both for doing IT well and purchasing IT services at the lowest cost. I don’t have easy answers. I’m reminded of the phrase from E.M. Forster’s Howard’s End: “Only connect.” In the case of IT, the message might be: “Only innovate.” Everything may  work out for those who continue to innovate, but there are no guarantees.