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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (9485)	3/9/2003 5:02:57 PM
From: Les H	Read Replies (1) \| Respond to of 306849

India retains edge in offshore outsourcing economictimes.indiatimes.com CSC to hire 1400. 400 for $ 3 million. that's less than 5% of the cost here. economictimes.indiatimes.com

To: Les H who wrote (9485)	3/9/2003 5:27:17 PM
From: Lizzie Tudor	Respond to of 306849

interesting- I wonder how they come up with those charts, and what it means across technology. For example, is it %bandwidth used/capacity, or number of excess PCs sitting around, or what. But anyway I agree there is gross overcapacity in technology but that doesn't necessarily equate to more consolidation among companies, after all Cisco has probably taken out 100 or so companies single handedly (or left the remainers as a shell of their former selves)... and Cisco equipment overall is probably the largest equipment glut, but we aren't going to see Cisco merge with anybody. They can downsize of course but they have done that already in a fairly brutal set of layoffs. Chambers now has a goal of $1mm in revenue per employee. What I'd like to see from MacKenzie now is some predictions as to how this downsizing is going to affect the behavior of these companies in the next upturn. I know it seems ludicrous to talk about an upturn now, but one day we're going to get one and thats the job of firms like MacKenzie- to think "outside the box" (thats their buzzword isn't it?). Because I have to say that $1mm revenue per employee is about max capacity... $1.5mm rev/employee and the whole system could shut down. Also pricing power, whats going to happen wrt that, if we have only one network equipment provider, etc. Just some "what ifs" I'm looking for vs. more rear view mirror stuff.