GEAC.....Canadian best kept secret Message Board

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Gold/Mining/Energy : GEAC.....Canadian best kept secret

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To: Herb Duncan who started this subject	10/18/2000 7:17:59 AM
From: Doug	Read Replies (1) of 1571

Geac troubles were self inflicted by Mgmt. In 1999 they had quarterly sales of $193m at a cost of $113m. In 2000 , they had $212m sales at a cost of $173m. Lots of bench time & Mgmt watching the dollar payout.! Geac refuses to take advantage of the International market. Software Consultancy is on its way to becoming a smoke stack Industry. India , Malaya and the Phillipines now dominate this segment of the market. India is churning out 60,000 top quality Software Engineers /year and has 20 out of the 32 CMM certified sites in the world. (7 mistakes/1m lines of code). Overseas cost are less tha 1/2 that in N.America.Besides their productivity is 20% more than we can get here. Look at the NAZ Software Index, CA,CPWR,BMCS,CS,Gac.to etc. In contrast, the Indian Software Companies are in boom mode. Software Consultancy can now be outsourced and done thru a virtual Network anywhere in the world in real time. Geac should maintain a set of highly motivated & mobile System Integrators and Analysts. All other work should be outsourced to those who can do it faster and cheaper. It is feasible today for GEAC to lay off 60% of its staff and save $100m/year by outsourcing to an Overseas partner. Outsourcing of Services to cheaper and more productive sources is no different than the model used and perfected by the Manufacturing sectors such as NIKE. If GEAC can realign itself, it certainly can turn around.

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