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Raleigh firms facilitate global IT world
Companies that farm out development overseas say its a global market
 

By J.L Reid
Triangle Tech Journal

Raleigh, NC – To many IT professionals who’ve fallen victim to the soft job market, Triangle-based companies like Serenus Technology Group and International IT Services (IITS) are the enemies. These firms help local companies develop software by employing programmers overseas. “I think for a century now, at least in the US, business has been global,” says Tim Hess, Serenus’ President and CEO, “[It’s a] fact that most large US-based companies have some multinational component. The fact that Serenus is multinational I think is natural.” Although the visceral assertion that jobs are directly being transferred from the US to other, lower wage, countries is somewhat true, if we stop at a list of statistics and job trend figures we might be missing the larger picture. “We’re creating jobs via our own company and via the leverage we provide to our client companies. I think that is a very positive situation.”

As full-fledged software development firms, both Serenus and IITS are moving away from the “traditional” overseas outsourcing model where a domestic company markets and resells IT services performed exclusively overseas. That business practice, as Serenus’ Director of Business Development Michael Tucker points out, is most often the source of negative feelings towards overseas outsourcing. “That’s a work-for-hire situation, and I wouldn’t classify us as work-for-hire.”

Both IITS and Serenus improve upon overseas outsourcing by implementing larger project management staff both domestically and at their international development centers. In Serenus’ case that is a “wholly-owned” subsidiary in St. Petersburg, Russia where they typically send two-thirds of a given project’s load. IITS currently has two development centers, in Vietnam and Australia, and are looking to open a third center in China. Both companies employ a globally distributed software development model, and would like to be seen in that light.

“I can’t think of one situation where Serenus has displaced a job over here,” both Tucker and Hess assert. Michael Lai Le, a former IBM veteran and Vietnamese refugee who founded IITS, is more than optimistic about the advantages of overseas outsourcing. “This is a global economy, and that’s not going to change,” he states. “Now if someone down the road were to look at what would happen if we didn’t use overseas outsourcing, he’d see that the amount of [jobs and money] we’d be losing is a lot more.” Le holds firm to a belief that companies have to outsource purely because it’s economical.

“My study shows that because we use overseas outsourcing the number of IT jobs here will increase from 10 million to 15 million within ten years.”

The types of jobs Le has in mind are those that both IITS and Serenus proudly use to counter the animosity people have to sending “American jobs” abroad. Both companies actively work with startups that wouldn’t have the capital to function as a company if they only used US-based resources. Le illustrates that IITS services can be 1/5 the cost of using developers here. If a project needs five developers, that resource can be secured easily overseas for the cost of one US developer. The remaining company resources can then be used to hire managers, marketing staff, and other positions. “These [startup] companies can only exist because we help them.”

Peter Dolina, IITS’ VP of Business Development, warns against holding onto the currently defined IT marketplace. “As a developer I have a challenge. To become valuable I need to be an [software] architect. I need to become a sales engineer. I need to add value by doing those things that someone overseas cannot do. We are training a lot of kids to be programmers. Are those really the high value-added jobs that are going to be valuable 10 years from now? Unfortunately, I don't think they are.”

Le certainly agrees about the future of domestic IT jobs, “We will be doing something else, just not coding anymore.”

International IT Services: www.iits-usa.com

Reference Link(s):

http://www.triangletechjournal.com/news/article.html?item_id=305