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Technology Stocks : Hewlett-Packard (HPQ)
HPQ 20.60-0.8%Jan 15 3:59 PM EST
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To: PCSS who wrote (2861)5/9/2003 11:27:29 AM
From: MeDroogies  Read Replies (1) of 4345
 
I found this part fascinating:

OFFSHORE A TOP STRATEGIC INITIATIVE. For all of our CIOs, 50% or more of their IT spend is on internal staffing. Between 30% and 70% of that cost is for maintenance/production costs which can be aggressively moved offshore. The remainder is for development, some of which can be moved offshore. Consistently, CIOs indicated fairly aggressive initiatives to shift the mix of dollars away from maintenance toward development by employing an offshore strategy. More than one of our panelists estimated offshore expenses as 1/3 to 1/4 the cost of internal expenses.

Apparently, the overall costs of doing this still has not been fully calculated. I know of not one single person who has shipped stuff offshore that thinks, in the long run, that they are saving money. Granted, I have a limited pool of reviewees (4 people), but it's pretty telling.
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