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The future of the company is in a global market? February 7, 2012

Posted by Mark Hillary in Current Affairs, Government, IT Services, Outsourcing.
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When outsourcing, and particularly offshore outsourcing, became popular business strategies only a few academics stopped to ask how this might change the very nature of the company as we know it. Now online resource marketplaces are becoming common, things are going even further.

These marketplaces are very simple. If you need something done, you post the job online. Across the world, millions of individual contractors and small companies watch these job postings and bid for the work, creating a reverse auction, based on price and their track record of delivery.

Tools like oDesk.com, Elance, and guru.com are all offering this service – usually for about 10% of the contract value as an agency fee. I have heard more and more people recently in large established companies talking about getting some copywriting or marketing or blogging done by going to these marketplaces – it appears to be replacing the old concept of local freelancers.

Cost has always been the main driver for those seeking to outsource work across the globe, but the availability of talent and the ability to scale were never far behind. What has changed is that many more international locations now have the infrastructure, the people, and the stability of democratic governments. There are many places in the world where IT and IT-enabled services can be delivered and entire continents, such as Africa, are waking up to this fact.

And these markets are not only allowing access to the lowest possible cost, but they have also allowed contractors to earn far more than they could locally because they are pitching their prices higher than the local market. Think for a moment, if a company from New York needs a website prepared and a local firm will charge them $1000, but a developer in Bangladesh might expect $100 in his local market, the contractor in Bangladesh is likely to pitch $400 for the job.

Until recently, I heard this week from a contractor who writes blogs in Bangladesh. He was moaning that people from the Philippines – who can undercut everyone – are flooding the online marketplaces.

It seems price is still important, but more importantly, these networks look ready to stay and to become an integral part of the modern company – hiring and firing and creating virtual global teams at will.

oDesk t-shirts: all about the bling, G.
  Photo by Dave McClure licensed under Creative Commons

Twitter can now remove tweets by country February 1, 2012

Posted by Mark Hillary in Current Affairs, Internet.
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The micro-blogging service, Twitter, recently announced that they can now ‘censor’ messages by country. Many in the technology community were shocked by this news as the transparency and free access to information sharing on Twitter was seen as a catalyst for some of the Arab spring revolutionary activity this time last year.

Twitter has said that the price they need to pay for operating in some countries is to have the ability to delete certain messages at the request of a state government. They claim that transparency has increased because they are being open about government requests to remove information.

But are we seeing democratic values, such as free speech, buffeting against national and commercial interest? Most users of Twitter probably read information from, and talk to, people in dozens of countries everyday. The information is just there, regardless of national borders.

Twitter appears to be capitulating to national governments, considering this as a price worth paying to do business in those regions, so it appears that censorship on major social networks can be bought. If the company doesn’t want to miss out on entering certain markets, they will do whatever it takes to be there rather than defending the free exchange of information.

Of course, Twitter is just a company. They are not supposed to be a champion of international free speech or human rights, but the service has developed a track record for being simple, open, and transparent. If that’s all about to change so governments can delete anything they see as seditious then where will the next Arab spring be created?

Arab Spring [LP]

Photo by Painted Tapes licensed under Creative Commons