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Technology Stocks : i2 Technologies
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To: Greg Jung who wrote (286)3/30/1998 12:39:00 AM
From: StaggerLee  Read Replies (2) of 2339
 
As this industry grows, more and more consultants have the aptitude to install and service these products. Other than noncompete agreements (which are hard to enforce) there is little to stop employees from splintering off and starting their own firms. With one contract a group of a dozen consultants can more than double their annual income, rather than collecting a salary from ITWO or MANU. The client saves in the process as well. I've seen it happen.

This is rapidly becoming a commodity service business. Forget about ever achieving 20% net margins here. Pressure is building on the cost side due to skyrocketing consultant salaries, and the pressure on the revenue side will soon follow.
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