Geography 3422A/B Study Guide - Reddit, Ebay

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Rise of the Software Machines and Outsourcing Own
Jobs 2/25/2013 1:29:00 PM
Rise of the Software Machines
IPsoft’s Eliza is a young company started by Chetan Dube, a former
mathematics professor at New York University
o A “virtual service-desk employee” that learns on the job, can
reply to e-mail, answer phone calls and hold conversations
o He says that artificial intelligence can take over most of the
routine IT and business-process tasks currently performed by
offshore workers
o At IPsoft’s media industry customer Eliza has replaced India’s
Tata Consulting Services
A small British start-up, Blue Prism, has developed a software-
development toolkit that allows people within a company to create
their own software “robots” to automate business processes
o An onshore IT worker may cost $80,000 a year and an
offshore one perhaps $30,000, but Blue Prism’s robots cost at
most $15,000 a year
Software Developer Bob Outsources His Own Job
When a routine security check by a US-based company showed
someone was repeatedly logging on to their computer system from
China, it naturally sent alarm bells ringing
o The culprit was not a hacker, but "Bob", a family man and the
company's top-performing programmer, who was outsourcing
his job to China
o While a Chinese consulting firm got on with the job he was
o paid to do, on less than one-fifth of his salary, he whiled away
his working day surfing Reddit, eBay and Facebook
o He had physically FedExed his security RSA "token", needed
to access the company’s VPN, to China so his surrogates
could log in as him
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