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Lehman Brothers' Information and Communications Technology (ITC) costs rose 18% in 2007 from 2006 to reach $1.145 billion, reflecting increased costs from the continued expansion of its investment management systems, according to filings by the bank. In the quarter ended Aug. 31, the New York-based company spent $309 million on technology and communications, up from $282 million in the same period last year.

Sorting out the future of Lehman Brothers' IT financials could prove easier than winding down its ITC investments. Meanwhile, Lehman Brothers' bankruptcy is likely to have a profound spillover effect to the IT industry.

The security concerns are multiple:

The "Big Brother" aspect that a machine now has gone beyond the text log file to one that is a visual log which could invade the privacy of someone who is looking up some medical records or financial records
The prospect that someone who wants to "steal your identity" can now know what sites that you have visited so they can get information from you easier.
The prospect that Google will have a way to capture the information on places that you go so they could sell directed "spam-class" advertizing.

Network-based backup is the general solution that now is becoming feasable, in many cases through use of existing WAN links without any bandwidth upgrades. Network-based backup allows for consolidation of data into the data center, where it can be placed onto tape or other secondary storage media. Backup data is then more secure, and easily accessible in the event of a restoration event. The backup method should optimize the regular transfer of backup data over the WAN into the data center, and accelerate commercial backup software packages by eliminating the transfer of redundant data and minimizing the effects of latency on data transfer. The approach should eliminate data redundancy across applications or servers as well, going well beyond other data reduction mechanisms found in other storage replication products.

Studies done at the Wharton School in 2008 indicated that about 15% of firms in the US engage in some offshoring outsourcing activity, and that about 30% of these firms oursource offshore IT workers, making it by far the most frequently outsourced offshore class of services work. In 2008 about 8% of IT workers reported having ever been displaced due to outsourcing, more than twice the percentage of any other type of employee studied. This rate implies an annual displacement rate of about 1-2% per year, only a small fraction of the roughly 40% annual worker turnover rate in the US economy.

Outsource Policy Wharton also supported the proposition that the skill composition of IT work is at least partly responsible for both the higher rates of IT-related oursourcing as well as a greater likelihood that IT offshore outsourcing leads to the displacement of domestic workers than offshoring of work in other professions. IT jobs tend to have less need for physical presence and are therefore more often moved overseas for cost savings. This not only makes IT jobs more likely to be offshored, but also substantially increases the likelihood that the offshoring of location independent IT