Pfalk, Elroy, RE: "My problem is when Cisco or some other company, doesn't check if US engineers are more productive (for their company), but blandly just look at the hourly rate, and decides that shipping the IP and development work overseas has to be a good idea, simply because the labor rate is lower there."
As an investor, I would have a problem with this. In fact, I have a problem with it already because I'm seeing some small indicators that corporations are blindly following a rule for their own self-serving bonuses, rather than thinking about what builds value for the company's shareholders. It needs to be done carefully with monitoring, factoring in all costs and productivity differences. I'm okay with an initial hit up front to productivity, under the assumption a site learns from their errors or delays.
As shareholders, we need to watch for this.
Keep in mind Elroy, am very pro-offshoring, have initiated offshoring, and have managed engineers that worked in no less than 6 different countries throughout my career, but do not like to see "blind following" and herd mentality that lacks the goal of building shareholder value.
Regards,
Amy J |
