When does offshoring make sense as part of an outsourcing project?
Berg: When people say offshoring, I always ask: “If you want to go offshore, what do you consider onshore?” Everything is distributed and accessible on a network. So, what do people mean when they say “offshore?” When you begin to examine that question, most people mean labor arbitrage lower labor rates. But the biggest advantage of driving things via the network which is also Sun’s significant value-add is that the services and applications can be provisioned, managed, and operated from anywhere. With Sun, the perceived labor arbitrage becomes less of a “let’s move this to a particular location” decision and more of a discussion about the processes and policies that can be managed by someone else. When our customers leverage the network and our best practices they get all the benefit of labor arbitrage without having to constantly move people around. IC: What are Sun’s advantages vis-à-vis the network? What kind of technologies is Sun working with? Berg: Sun is working with technologi
