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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 77.35+0.7%1:51 PM EST

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To: Elroy who wrote (67602)4/14/2005 1:02:38 PM
From: Amy J   of 77400
 
Elroy, RE: "If the developmental SW offshoring idea is so terrible"

The issue isn't if sw offshoring is a bad idea. The issue is "blind" mandates, not careful planning. Boards that blindly follow without the necessary ground work will be weeded out of the system. The smart ones will do the necessary ground work.

RE: "As far as I can tell, my conclusion still holds: It can't be both a long term trend and not cost effective. If it isn't a superior method, companies will revert to the old method. If it is a superior method, then Lizzie is wrong."

My point is, let the market decide what's right. The same point as yours. My point is that blind mandates can push a market in a particular direction that isn't necessarily the right combination of full optimal performance.

In regards to Lizzie's point that you want to address, the point is made irrelevant when there are blind mandates from VCs.

RE: "How about the answer to my question, or is that also "top secret"?"

But the thread wants to know what secret country you reside in first : ) ( Saw your PM )

Overseas salaries are at least double what they were when we started. It's not the good deal it used to be. Glad we started back when the wages were an excellent deal so we captured the largest advantage back then as well as getting a country's best talent (some were the top ten in their country) which allows us to continue to capture the best talent. (As oppose to fighting over the same people, which is what companies that are just starting offshoring now have to do - they are late comers - being late indeed has its penalties.)

Moving forward, according to reports, across the board overseas hightech wages in one country were more than three times the raises in the USA. The thing that I like about the USA is you know the immigrant engineer has already gone thru a larger hurdle to become an engineer in the USA - you know you are getting top talent when you hire in the USA, for example, you know he or she would be from IIT instead of ITT. American engineers have an excellent level of practicalness and creativity that's especially useful. Even though we may unknowingly have started the offshoring trend in the VC world, I would never agree with blind mandates imposed by a VC firm. You have to do what's good for building a company's long-term value (not just the ceo's annual bonus) and think it through.

Regards,
Amy J
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