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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: RetiredNow who wrote (63060)	2/12/2003 1:21:17 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 77400

OT Just a piece of anecdotal evidence on this outsourcing issue. A major retailer put a project bid out to an indian consulting firm this week. They got back a bid at $700K. Way too high apparently for their budget, and consequently they have decided to do the project in-house. I knew this would happen. First of all US tech labor rates are a fraction of what they were. Secondly a subtle cost exists when doing business remotely, which adds to the bid. Unless offshore development is 30-40% below equivalent US rates it isn't worth it, imo. Brutal outsourcing of IT has really hurt US labor and capex spending too. If this trend turns and stabilizes business will pickup for a lot of tech companies imo. Note that I am in favor of outsourcing, anything to make tech more efficient I support, but dropping huge depts has cost a lot of jobs and intellectual capital, imo it has gone too far.