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

To: Kirk © who wrote (71184)	10/2/2006 3:39:15 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 77400

Are you suggesting that they built all those expensive R&D offices to do contract manufacturing? Yeah, I am. Actually when all the bldgs were procured out here nobody even thought about offshoring R&D to India. The global network infrastructure wasn't functional yet, in 1996-1997 timeframe. It took off in 2000. I know you know this Kirk. You are aware of this kind of thing at HP. Outsourcing has reached the highest level of the manufacturing supply chain: R&D. By outsourcing R&D offshore, original equipment manufacturers (OEMs) can freeze a portion of their R&D budgets while growing their product offerings. Even R&D powerhouses such as IBM, HP and Motorola have frozen—or even reduced—their R&D budgets since 2000. "[Outsourcing] is a tremendous opportunity for cost savings on R&D," says Jack Faber, vice president of operations, enterprise systems for HP. cio.com; So, Motorola IBM and HP have frozen their R&D budgets since 2000, what does that mean? It means they haven't hired anybody and they need no new office facilities.