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Technology Stocks : TAVA Technologies (TAVA-NASDAQ) -- Ignore unavailable to you. Want to Upgrade?


To: TokyoMex who wrote (22555)8/23/1998 11:38:00 AM
From: AHM  Read Replies (5) | Respond to of 31646
 
I'm new to this board. But I have just created a position in TAVA and feel strongly about it because this company is in a niche market with little or no competition.

Wexler fails, in my opinion, to understand the motivations for outsourcing such as has been contractually established by Chevron, Boise Cascade, Polaroid, County of Los Angeles and others with TAVA.

He clearly has no managerial or Fortune 500 experience and fails to understand that the existing IT and engineering staffs have their hands full with day-to-day problems - and to solve the Y2K problem, most particularly in the market that TAVA is in, armies of outside specialists must be hired. This places stress on Human Resources who, in general, are badly equipped to evaluate such recruits and adds to the time pressure of IT and engineering staffs who must interview and judge who can perform the work. None of this encompasses the cost of benefits for new employees and potential union or minority interest problems when the problem is solved and these people are no longer needed. Even before the project is finished, it's infinitely easier for managment to ask an outside contractor to replace a consultant who is doing a bad job than to fire such an individual, itself. I doubt Mr. Wexler has ever been faced with the problems of firing somebody for bad job performance - most especialy if they are considered a member of a minority group.

Traditionally management goes to the outside to eliminate such problems and to have another entity to point the finger at if the problem (in this case Y2K) is not solved in time. "After all - we undertook the correct action and hired the best consultants that are available..." or words to that effect are the way to protect themselves if the outcome is not as required. And if everything turns out OK, management is regarded as heroes and are rewarded appropriately.

TAVA is now benefiting enormously from a "me too" effect - they have stellar references from existing contracts. It becomes increasingly easy to attract more commitments because the decision to outsource to TAVA for its specialized capabilities is a "safe" decision for incumbent managements of company's that have little time left to solve the Y2K problem in their manufacturing and process control facilities.

As further evidence of TAVA's growing dominance and acceptance in its field, the recent posting by another reader of this thread that KEA, one of the best in the Y2K IT area, has designated TAVA as its recommended outsource for non-IT Y2K problems that KEA's clients must solve.