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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Seeker of Truth who wrote (50747)	6/6/2004 6:51:03 AM
From: John Carragher	Respond to of 74559

"So we see important huge scale outsourcing to companies like IBM or HP." Huge scale outsourcing has been common for a few decades but not restricted to computer operations or support. It really has nothing to do with that subject but management in seeking to reduce costs have found companies who can run their internal sections much cheaper than the company can do it on a smaller scale with larger overhead cost. some examples would be credit card departments mostly all outsourced in mid seventies, and late eight's. During the early ninety's personal and benefits were being out sourced. In addition customer support companies began to become a prime outsource to oversea locations. Dell in India, Ireland were two prime out source locations as they spoke English. I can go back to early 70's when union drivers negotiated terrific wages in good times but would not give back in slower times. They priced themselves out of the market. Fleets of truck drivers lost their jobs and companies went from 100% own truck to 60 /70% dedicated carriers (outside contract rate carriers) at much cheaper rates. The additional benefit of not only getting substantial reduced labor burden but trucking maintenance and ownership was also remarkably reduced. Can see the bleak picture you present in your earlier post. I do hope it is wrong. I was looking for growth.