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To: DesiCoderExtreme

AmericanDragon appears to be on an extended vacation from FR, he won't get your message.

On the topic of outsourcing - it turns out that for some things, it doesn't pay to outsource, that the costs of overcoming cultural and language barriers exceed the money saved by paying lower wages, which is why Apple and a number of other companies pulled out of operations in India. The popular myth is that outsourcing can save a lot of money, but a lot of companies found out that it was not true for them.


88 posted on 08/20/2006 9:12:14 AM PDT by thoughtomator (Islam delenda est)
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To: thoughtomator
Of course you know this because you're the CEO of a multinational corporation who's personally witnessed his ROI decline through outsourcing functions to India?

If outsourcing cost savings are really a myth then the flow of work to India should have dried up long ago. The free-flow of information on NYSE / NASDAQ should have alerted investors to potentially reducing economic returns of Corporations that undertook such activity, thus forcing down their share-price. The market, as always takes care of everything and everyone.

But the market has not stopped outsourcing to India for nearly FIFTEEN years now. For every 1 company that pulls back, 10 are investing more after obtaining the initial cost savings. Thats the reality of it pal - the bottom line is the $ rules.

Forget Christianity, Islam, Hinduism ...

American capitalism = the greatest religion ever invented.
89 posted on 08/20/2006 9:27:13 AM PDT by DesiCoderExtreme (Reality)
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To: thoughtomator

The case of Apple is actually not isolated but your analysis is wrong. Apple was a late starter in the outsourcing wave. They set up office in India early this year, much after every single software major had. Their strategy was also rather poor. They came to India expecting the same red carpet welcome that China gives them. Also they expected to have slave labour work away for 12 hour days with very low wages (for more on this, look up threads on Freeper about Apple's ipod factory in Guangzhou). India IS NOT China. We do not sell ourselves cheaply, and our USP is more than just low costs. A company that wants to do high-tech stuff atlower costs, keeping in mind quality and innovation will do well in India. An company that wants to exploit cheap labour better start early. If it arrives as late as it does, it better expect people to have smarted up to is games. This is pretty much what happened to Apple.


90 posted on 08/20/2006 5:35:06 PM PDT by MimirsWell (Pakistaneo delenda est.)
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