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Technology Stocks : Long Term Investors' Outpost

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To: Uncle Frank who wrote (342)8/8/2002 2:27:19 PM
From: Lizzie Tudor  Read Replies (2) of 562
 
Probably true; engineers are in a weak position at the moment. Perhaps companies convert all their engineers to contract worker status. Then shareholders wouldn't have the unnecessary drain of health insurance and vacation benefits against earnings.


This is what cisco does for a lot of IT infrastructure. The problem is, then Cisco must pay what the skillset is actually *worth*- gasp!

How much does it cost for Cisco to hire a bunch of people who can customize their order cycle to be more like Dell's. One option is they can get consultants to do this from Oracle- thats about $150/hr. Or they can hire independents to do it (slightly less). To hire employees to do it, it would knock their IT salary guidelines all out of whack, since IT is mostly support personnel not order cycle architecture people.

I wonder if this reliance on contracting personnel is skewing cisco's revenue/employee to the upside? their other costs seem inline though, capex and all that.
L
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