The Residential Real Estate Crash Index Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: jt101 who wrote (7884)	1/5/2003 8:29:54 PM
From: Lizzie Tudor	Read Replies (1) of 306849

I remember in summer/fall 1998, there was a task to make sure the system is Y2K compatible. (Whether this was essential or not is a different topic altogether). The rates quoted by the leading US consulting companies were $175/hour for programmers and $300/hour for the team lead. Fortunately some Indian company quoted rates at $65/hour and $90/hour respectively and they finished the work in 3 months compared to the average 4 months quoted by leading IT company here. I think you've hit the nail on the head. US "consulting companies" were not set up to handle routine tasks like y2k upgrades. The reason you call PwC is when you are a retailer and want to correct something in your gross margins, or put in place an e-commerce initiative... PwC is supposed to have done this at other retailers so they have the management expertise to get the job done. You know you are overpaying for PwC since their "consultants" (which are really just programmers) are $150+/hr, but because they are guiding the entire initiative and your in-house people likely have no experience in this, it is worth it. (in theory) During the 90s however we had a convolution of events like y2k and the necessity of corporate intranets etc. that really just required more bodies to hit the problem. The US consulting firms bid for this business and it was really overkill. This stuff should go offshore now. In the middle between large business initiatives and maintenance/upgrades are mid-level projects like application upgrades (Siebel) in-house... e-commerce storefronts etc. These are things lots of existing IT mgmt can already do.. you don't need people to tell you how to do it or do a cost/benefit analysis or anything. These are the things that are going offshore right now that I feel probably shouldn't. Its a grey area, but we will find out in a year or so if companies doing this sort of outsourcing (now) are satisfied. Note that I am not in any way implying that offshore consulting houses can't offer the same services that US firms do based on brainpower alone. The issue is that they are not physically here, next to the business processes that they are trying to reengineer. Lizzie

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next