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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: Charles Tutt who wrote (61949)	9/19/2004 6:56:26 PM
From: QwikSand	Read Replies (1) \| Respond to of 64865

I think it is related to a good point that Lizzie has made repeatedly: as often happens with business fads, this offshoring, which is just an aspect of the old "virtual corporation" (i.e. let's just keep our "core competencies" in house and outsource everything else to somebody who's better at it) has overshot. We've heard these nutty quotes from top to middle management about "I want you to think about what you can send to India TODAY" and so forth. Then they find out that the crew in India can only do so much. Fads make the pendulum swing too far. There is such a thing as institutional memory and intellectual capital and increased responsiveness resulting from shortened control paths. The interesting issues that the IBM story raises for Sun is that maybe Sun spent their money better by working on products, and IBM spent their money chasing a white elephant by building a huge services organization? I assume that's at least part of what you meant. If the "core competency" pendulum swings back the other way, Sun's relative ROI position improves. --QS