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International Business Machines Corporation Message Board

  • retiredexaon retiredexaon Feb 15, 2012 4:03 PM Flag

    On Outsourcing and Growth

    This is the single BEST comment I have found regarding IBM outsourcing American jobs to India. For those who are long on this stock, beware. "IBM is indeed growing it's price per share by firing US - EMEA - UK workers and hiring cheap labor. It has been estimated that IBM saves 80% per hourly wage when hiring over seas, but you also need to consider the IBM benefits overseas are minimal as well. The yellow flags will turn red after IBM can no longer diminish the US - EMEA - UK workforce(s) and it(IBM) will actually have to show financial growth. Yes, it will level off someday, but sadly, there will not be many US - EMEA - UK workers left in the mix"

    There is a day of reckoning out there.

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    • well they are all doing it!
      ibm,csco and all other firms all IT related peripheral work are just dumped plainly. Well those who graduated in usa are also getting raw deal! what a great mechanism!

    • IBM has about 2/3 of revenues outside the US. The days of American carpetbaggers taking profits out of foreign countries and sending them home are over. In China, IBM has Chinese staff and so on.

      So the better part of 2/3's of IBM employees are going to be indigenous citizens of foreign countries. Also, you source labor and talent to arrive at the lowest cost or you will fail.

      You want to bring back protectionism and favor American employees -- that's fine. If everybody had to play by the same rules that would be one thing but there are plenty of foreign firms here employing Americans. The Japanese build cars here because they can't afford to build them in Japan. If you were in Japan you would be saying the same thing.

      The best growth in the world today is in emerging markets. I hope world protectionism doesn't rise and cut IBM off from BRIC and other nations. IBM would surely take a nose dive if that happened.

    • "There is a day of reckoning out there.

      You would know rowe. I'm sure you remember your day and the resulting birth of your now huge IBM fetish.

      • 1 Reply to yield_of_my_dreams
      • I am not rowe. If you examine my handle, I am a retired (read that outsourced) IT professional from Aon. I have an abiding hatred of outsourcing in general and IBM in particular. I do not own stock in IBM and did indeed work for a business partner in 1990/92, those wonderful John Akers years.

        Other than your personal insult, what was really wrong with my post?

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