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Dell moves outsourced jobs back to U.S. shores (Taking The "Delhi" Out Of Dell)
Forbes ^ | April 28, 2004 | Elizabeth Corcoran

Posted on 05/01/2004 12:33:35 AM PDT by Enduring Freedom

Dell moves outsourced jobs back to U.S. shores

Computer maker loses quality cushion between H-P, other rivals

By Elizabeth Corcoran

Updated: 1:04 p.m. ET April 28, 2004

Dell moved product support for business accounts from India back to the U.S. It seems some customers were not happy with the prior arrangement.

Dell can assemble and ship a new computer for a customer in 24 hours. But it took six months for the company to get Karen Anderson's name right. Anderson, who lives in Calistoga, Calif., endured dozens of phone calls before Dell issued her a promised $200 rebate for a computer she ordered last October. Dell also gave her the wrong Internet service provider. And her printer broke. "I just want to scream when I see Dell's TV commercials," Anderson fumes.

Dell is number one in the PC industry, but recently has been earning more than its share of complaints. Last year it shipped 5.4 million personal computers in the U.S., ahead of rival H-P, which shipped 5.2 million, according to IDC. Dell's high marks for quality notwithstanding, it has unhappy campers.

Last year the central Texas Better Business Bureau logged 3,726 complaints against Dell from consumers throughout the U.S. That's up threefold from 2001, a period in which Dell's sales volume grew two and a half times. H-P earned only 1,362 complaints nationwide for that entire three-year period, according to the Better Business Bureau of the Silicon Valley. Last year the Texas attorney general's office logged 504 complaints against Dell and Dell Financial, more than double the pace of 2002. Complaints about the Round Rock, Texas firm for the first four months of this year are running even with last year's.

(Excerpt) Read more at msnbc.msn.com ...


TOPICS: Business/Economy
KEYWORDS: delldelhi; lowqualitycrap; outsourcing
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To: Enduring Freedom
This is what I've been saying would happen all along. There is no country on earth that is as service oriented as the US and Americans are used to that and refuse to change just for a few bucks in savings.
21 posted on 05/01/2004 3:55:51 AM PDT by McGavin999 (If Kerry can't deal with the "Republican Attack Machine" how is he going to deal with Al Qaeda)
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To: traumer
Dell does make great machines - I have a wonderful Dell Inspiron 8200. That being said, I too, went through 'Dell Hell' just last year. I had to send in my laptop for warranty repair, and Dell lost it. It took almost three months to acheive a resolution - a new laptop and $200.00 to compensate me for my loss of productivity. I made a promise to only buy systems from local dealers whose faces I can see (and complain to if something goes wrong). It may be a bit more expensive, but I am tired of rewarding corporations for poor customer service.
22 posted on 05/01/2004 3:59:34 AM PDT by spower
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To: Texasforever
"This is the answer to outsourcing. Let the market work. Those that want "government solutions" have a problem with that concept."

The bigger problem of outsourcing will soon arise when those subcontractors begin giving out customers' personal information and there is no US court's jurisdiction to prevent or stop them.

23 posted on 05/01/2004 4:04:56 AM PDT by azhenfud ("He who is always looking up seldom finds others' lost change...")
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To: chronic_loser
I shake my head when people say they like HP. Their machines suck.

Back when Mr Hewlett and Mr Packard were running the place, you could not find a company with better quality products.

Then the old founders passed away, and the next generation took over. The descendent with the most power on the board happens to be a radical feminist who just HAD to put Carly Fiorina in as CEO in 1999. It was a good move for Carly -- she bailed out of running Lucent a few months before Lucent sales collapsed and they laid off half of their employees

Carly will probably complete her destruction of HP within the next couple of years

24 posted on 05/01/2004 4:10:45 AM PDT by SauronOfMordor (That which does not kill me had better be able to run away damn fast.)
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To: SauronOfMordor
I remember in the 70's (and probably 60's too) HP was The Company every engineer dreamed to work for !!!

Now, Carly Fiorina views HP employees as 'comodity' and jobs in general NOT as 'God given right'.

Except of her Job of course....
25 posted on 05/01/2004 4:18:50 AM PDT by traumer
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To: Enduring Freedom
This is as some of us expected about 3-4 years ago. "Outsourcing" works for low-talent/low-skill stuff, but eventually the market moves on and the real VALUE-ADDED, as I've always said, is in AMERICA. Expect more of this.
26 posted on 05/01/2004 4:23:10 AM PDT by LS (CNN is the Amtrak of news.)
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To: Enduring Freedom
Just bought a new Motorcycle and cant figure out how to program the radio.
27 posted on 05/01/2004 4:30:23 AM PDT by sgtbono2002 (I aint wrong, I aint sorry , and I am probably going to do it again.)
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To: Pure Country
I still have that voice on my answering machine that answers for me cause I don't know how to put my voice on it.

That's an easy one.

Place the answer machiine in a paper bag, hold the bag as if you were blowing it up. Speak into the bag slowly and distinctly with your greeting.

Close the bag, put a rubber band around to top and let it sit for 3 days.

28 posted on 05/01/2004 4:57:44 AM PDT by Vinnie
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To: BykrBayb
My advice is to go to some computer store locally which has BEEN AROUND for 7 years (not a national chain) and let one of the techs build you a machine. That is all Gateway, HP, Dell, etc do. They buy components and slap them in. If you buy locally, you have someone with a face who does support and can just take the machine back. Be willing to let them educate you as to what components to buy and why, and buying a computer can be educational. Those guys are like anyone else. When you show you appreciate what they know, they will fall all over themselves to help you

I build about as many machines as I buy (not as much time to do it anymore, as the business has grown), and I use a local store (Intrex, in Durham NC). I know the guys in the store by face, they know me, and I can count on them to help me.
29 posted on 05/01/2004 5:00:15 AM PDT by chronic_loser (Yeah? so what do I know?)
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To: Enduring Freedom
The mouse on my new HP went bust. It took weeks, several phone calls to India and a lot of wasted time trying to get a replacement. I get repeated emails wanting to know about service etc etc, just ignore them as HP could care less.
30 posted on 05/01/2004 5:03:41 AM PDT by cynicom
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To: spower
It may be a bit more expensive, but I am tired of rewarding corporations for poor customer service.

I remember several years ago that Gateway and Dell vied for top spot in the computer retail market.
Gateway's customer service suddenly went downhill and look at where they are today, on the verge of going belly up.

Some business costs simply can't be cut. Once customer perception sets in, it is very difficult to turn around.

31 posted on 05/01/2004 5:04:54 AM PDT by Vinnie
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Comment #32 Removed by Moderator

To: Enduring Freedom
My son-in-law works as a computer programer and was saying that his company had outsourced to India and was moving it back.

Any cost savings realized by lower salaries and not dealing with unions and employment laws etc (the reason for moving iit to India)- was not what they expected. In fact, it was costing more to deliver the same quality services as before.

1. It took twice as long to communicate the same amount of information with customers as before.

2. When customers were able to communicate, they did not have the same amount of trust in the information that they were receiving. They often made repeated phone calls to ensure that the information was indeed, correct.

3. Meetings VIA computer required one side or the other to meet at midnight or the wee hours of the morning. This made those meetings nonproductive and very hard to schedule.
Thus requiring much more air travel by trainers etc than had been anticipated.

4. Customers viewed the whole outsourcing with contempt and lost all respect for companies that were using outsourcing viewing the whole experience as akin to treason.

They are in the process of moving it back to the good old US of A.

33 posted on 05/01/2004 5:30:15 AM PDT by ODDITHER
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To: traumer
Now, Carly Fiorina views HP employees as 'comodity' and jobs in general NOT as 'God given right'

You have to read between the lines a bit to discover what really was going on at Lucent under Carly. From the book Perfect Enough: Carly Fiorina and the Reinvention of Hewlett-Packard, we have some interesting excerpts:

In parts of AT&T and Lucent, old-fashioned men still plastered their office walls with Rocky movie posters. They were the Bell Heads, people she once referred to as having "twenty-inch necks and pea-sized brains." Top executives, however, wanted to transform both those companies into fresher, more open-minded places. At several key stages of her career, Fiorina benefited greatly from mentors such as Lucent chairman Henry Schacht and AT&T network systems chief Bill Marx, both of whom labored to clear a path for a talented young woman. As Schacht frequently told associates, "If you aren't promoting women and minorities into very top management, you aren’t making use of the full talent pool in America.
Translation: Carly could not be allowed to fail, because that would make certain very senior people look like idiots. Bad news would have to be covered up, until it could not be covered up any longer, at which point Carly would need to "move on" before the dam broke
Finally, as Fiorina grew truly powerful, she confronted the most disruptive parts of the old-boy network and crushed them. In the late 1990s, Fiorina had risen to be president of Lucent's global service provider business, overseeing the company's largest and fastest-growing business, with $20 billion a year in revenue. She grew concerned that a new acquisition, Ascend Communications, was bringing a frat-house culture into Lucent. So a few hours before a giant talk to 2,000 Lucent and Ascend sales representatives, she prepared a surprise involving three rolled-up athletic socks, borrowed from her husband that morning. She stepped out onstage in a loose-fitting pantsuit and started her talk gently, saying that she realized the two companies had somewhat different cultures. Then she began to get blunter—and earthier. "We at Lucent think you guys are a bunch of cowboys who don't understand carrier-grade quality," she said. "You probably think we're a bunch of wusses. Well, I think it's important that we really get to know each other." With that, she set aside her suit jacket. Now everyone in the audience could see an unmistakable bulge in her pants, just where a virile man might protrude. The bulge—produced by those three athletic socks—was shockingly big. As people gasped, she delivered her closing line: "Our balls are as big as anyone's!"

The meeting collapsed into chaos at that point. People howled, shrieked, and gasped. Five minutes later, they still were sputtering in disbelief. And over the next year, the macho Ascend culture disintegrated. Sales representatives who learned to do things the Lucent[Carly] way stayed. Those who couldn't adjust left.

Translation: She decided to destroy the corporate culture that made Bell Labs (part of which split off into Lucent) one of the top technology centers on the planet, because it bothered her personally.
34 posted on 05/01/2004 5:43:45 AM PDT by SauronOfMordor (That which does not kill me had better be able to run away damn fast.)
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To: Enduring Freedom
Next, the Leftist media must be undermined, and/or brought back to balance.

Any good ideas out there?

Outsource 'em. And may they get similar results to what Dell got. :)

35 posted on 05/01/2004 5:48:26 AM PDT by LibKill (Yep, we are cowboys. WYATT EARP cowboys.)
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To: Barlowmaker
"Folks who depend on customer service for microcomputer use have a myriad of personal problems that transcend outsourcing."

You are forgetting there is still a significant number of analog people living in a digital world.
36 posted on 05/01/2004 6:14:42 AM PDT by Rebelbase
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To: Vinnie
Place the answer machiine in a paper bag, hold the bag as if you were blowing it up. Speak into the bag slowly and distinctly with your greeting.

Close the bag, put a rubber band around to top and let it sit for 3 days.

Okay, it's in the bag. I can't wait for the three days to pass!! Call me at 8:00 Tuesday morning and you can check it out!!!!

37 posted on 05/01/2004 6:58:02 AM PDT by Pure Country
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To: Pure Country
LOL!
38 posted on 05/01/2004 7:09:08 AM PDT by Vinnie
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To: spower
My sister has had problems wirh Dell as well. I bought a Gateway but my next computer will definetely not be a Gateway!
39 posted on 05/01/2004 7:17:12 AM PDT by anncoulteriscool
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To: Enduring Freedom
bump
40 posted on 05/01/2004 7:17:48 AM PDT by VOA
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