Wednesday, February 28, 2007

The World is Flat

In his 2005 book, The World is Flat, Thomas Friedman describes the unplanned cascade of technological and social shifts that effectively leveled the economic world, and “accidentally made Beijing, Bangalore and Bethesda next-door neighbors.” I experienced this phenomenon first hand recently evaluating suppliers for a consulting engagement. When it came down to the short list of suppliers that met this DMO's requirements, two companies emerged providing the best fit for my customer's needs. Both of the companies have headquarters in the US, but have approximately 90% of their employees in Asia (India and Sri Lanka). Over last two-three years the majority of travel software companies have either outsourced part of their development to off-shore centers or formally opened branches in places like Bangalore or Saint Petersburg. Eastern Europe and Asia are not only catching up fast, but are quickly passing the US in highly skilled software engineers. To better understand the global impact of the flatting of the world phenomenon take a look at this video: http://www.scottmcleod.org/didyouknow.wmv

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