So if cost and and profit are to be the sacred alter of shareholder value, at what cost then does it come when accounts such as AstraZeneca, Disney and Texas LEAVE IBM for other outsourcing firms? Buy this logic and you can postulate that if EVERY firm departed IBM service contracts, IBM could fire everybody at one time, cut salary expense to the bone if not almost zero and INCREASE SHAREHOLDER VALUE ENORMOUSLY!!!
You are all fools. Delivering cheap support is one thing, delivering value added QUALITY support is quite another thing and one that IBM and others have forgotten how to do.
"No problem with global economy, that is a given. It is reason for terminating American workers that troubles me and always has, JUST for salary expense reduction and no other reason."
Salary expense is very important to any business.
You imply that IBM should be able to take money out of a country and not staff foreign operations with indigenous employees. You also imply that if IBM's competitors staff out of India, like some IBM competitors who are themselves Indian firms, that IBM should set up its operations in Chicago or New York and try and bid on the same contracts.
But the days of being carpetbaggers in developed countries in Europe and Asia are over. You can't staff IBM Japan with dudes from Texas. All of the BRIC countries now are going to be staffed with locals. The biggest disparity in US vs indigenous employees is in Africa and other impoverished nations because there is relatively little local talent to compete.
And for IBM to compete globally in services they have to be able to make margin or they can't compete and would have to leave that huge business to others. It's that simple.
Your posts are rants without any supporting reasoning.
IBM is just a middle man to India and will slowly be cut out of the business. Why should companies pay exorbitant fees to IBM managers and shareholders when they can go directly to an Indian company and hire them for much less and receive just as good if not better quality of work. Capital only cares about the lowest cost producer and that's why IBM lost Disney's contract to a more competitive Indian company. Capitalism works.
not going to argue that losing big customers is good but it is part of biz. They have a 139 billion backlog. You can't pick two contracts and interpet that to mean the company is falling apart. You'd be better off arguing that the 1% drop in backlog is concerning
as for overseas, they are trying to grow in the BRIC so you better beleive they'll do biz in those areas and I'd sure like some empirical data that indicates that indian tech support is inferior to american tech support.
Ever hear of "renewal" - WHY did AstraZeneca, a $1 billion account TERMINATED EARLY and Disny, a bona-fide American iconic company, BOTH NOT RENEW! My point is that offshore jobs and outsourced staff in India DO NOT DELIVER QUALITY WORK OR SERVICE. I find the Texas Data Center fiasco particularly galling for IBM because if Big Blue SCREWS UP A DATA CENTER, then what the HELL else do they do wrong? This is bread and butter stuff for IBM, home of the mainframe and data center computing. I have seen and worked in the data center at Sterling Forest, NY and it is impressive.
My point is that while all shills always say that cheap labor in India reduces payroll expense and increases shareholder value, that the QUALITY of the deliverable product to the client invariably suffers horrendously, so after a while of being poorly managed, these firms DO INDEED GO ELSEWHERE.
IBM does not want that, EVER. No salesman in his right mind would justify some company turning to another service provider but apparently it is OK in your book. It is to be expected, normal that they chose to go elsewhere. I suppose then that you are indeed right.
Given the poor service IBM does deliver, hell yes, clients do go elsewhere. Boy, that increases shareholder value doesn't it!! Maybe all of IBM's clients can go elsewhere too and that will really bring it UP UP UP.
By Jacob Barker
Sunday, May 27, 2012
Since you probably won't read it anyway, I'll just post the link for the people who want to: