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To: fatty who wrote (16658)	2/4/2004 10:22:05 AM
From: GraceZ	Read Replies (1) \| Respond to of 306849

You're simplifying things. Yes, most business concepts that work are extremely simple. You missed my point which was that one can attain a far higher salary if you are willing and able to take on the risk of whether or not it will be profitable. Why else would a group of clients pay approximately 5 times what they would pay for an in house person to do the same thing? If you can't figure that out, you are already doomed so you better rachet down that lifestyle for 30k a year right now. If outsourcing was fashionable that the time I did the project Unfortunately companies do make decisions based on fashion, but eventually they bumble into what works. In my biz I've been through the in house>out source>in house>out source cycle so many times I have the routine memorized. I can tell you that almost three years from the date that the client tells you they will taking some aspect of their biz in house that I'll get a call from them asking me what my current rates are for XYZ. Theoretical savings have this way of evaporating. Alternatively choosing vendors primarily on price has this way of costing more down the line. My print prices are 20 times what the Walmart down the street charges. Why would a customer pay 20x, are they all stupid or is there more to it than sheer price? It has nothing to do with how I market my services as you suggest. It has to do with delivering superior results that result in large profits for my customers. Still this doesn't stop them from doing dumbass mistakes like I detailed above where they take the work in house again. There are a new crop of MBAs every year, these companies keep hiring them straight out of B school (in some misplaced desire to cut costs) so the companies are continually subjected to repeating the same mistakes over and over. Alternatively, the client could have kept the manual process but replaced the team of 5 with Chindians for 10% of the cost Your post does hit on something that is interesting, that people in a low wage environment can be employed cheaper than technology. This is something that is happening in Chinese manufacturing. Companies that employ high tech solutions are having a hard time competing against those that use more raw human power. Consider that a machine in the US is cheaper than a human by a very large magnitude that speaks volumes about just how cheap labor is in China or how expensive machines are relatively. It also shows just how little tech spending can add to the bottom line of the types of businesses that the Chinese are getting into, i.e.. labor intensive. It's equivalent to vegetable farming in this country.