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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 76.94

+1.1%

Nov 28 9:30 AM EST

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To: Mighty Mizzou who wrote (26843)	7/13/1999 2:00:00 PM
From: The Philosopher	Read Replies (1) of 77400

It can be very tricky to control costs when you outsource. But isn't it also true that it can be more efficient if done right? No permanent labor force when demand temporarily drops, strong competition among manufacturers, ability to reject at no cost product which doesn't meet quality standards, if a factory burns down or goes on strike, fairly easy to move to a different manufacturer quickly, etc. Isn't it better in an industry as fast moving as this one to let somebody else worry about the capital investment and tooling and concentrate on design, marketing, and oversight of oursourcing? Haven't a number of companies faltered because they overbuilt manufacturing or built facilities which were out of date too soon?

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