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Technology Stocks : CATP-The stock is taking off
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To: Ram Seetharaman who wrote (538)3/20/1999 6:22:00 PM
From: Rick  Read Replies (2) of 782
 
Industry Picture - Part 2

There continues to be a general shortage of highly skilled technology labor. Add that companies continue to like the flexibility of outsourcing arrangements, and the demand for services still looks good for the forseeable future.

As Y2K work diminishes, some tech labor will be freed up, reducing wage pressures on the one hand, but also reducing pricing power for services rendered. The overall effect is hard to predict, so I will suggest that they will be offsetting and not such an important factor.

Industry consolidation will continue, as economies of scale continue to be the rule in our new, more global economy. CATP, once a hungry acquirer is now attractive prey for large global players like IBM, Computer Sciences, SAIC, Unisys, etc.

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