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$650-Billion Tech-Services Industry Must Rethink, Says Infosys CEO Nilekani
ZhonghuaRising ^ | June 8, 2006 | Dr. Bill Belew

Posted on 06/08/2006 8:31:43 AM PDT by G. Stolyarov II

I read that it used to cost about $70 on average for a computer geek to walk from cubicle to cubicle to install the needed software on individual PCs at different work stations.

Now, IBM has 200 people in Toronto running a software installation factory for clients worldwide. Packages are delivered over the Internet to machines at 20 cents per PC.

Whoa! Big difference!

Giants in the PC market don't have the luxury of making gradual changes in the way they do things anymore.

Indian companies have rewritten the rules of competition - because Indians can do it cheaper and with high quality.

Consequently, western tech-services giants are being forced to realign their workforces - to rely on overseas workers in India, China, Brazil, and Eastern Europe.

Infosys CEO Nandan M. Nilekani says the big companies "are acknowledging the megatrends but not moving fast enough."

What would happen if India or China decided they would NOT build or service American PCs anymore and instead did their own?

Hmm...where would that leave the IBMs and Dells? And how much would we have to pay for them then?

What do you think?


TOPICS: Business/Economy; Extended News
KEYWORDS: china; computerprogramming; computers; corporation; corporations; efficiency; globaleconomy; globalization; india; infosys; internet; outsourcing; programming; progress
This article conveys an important truth: outsourcing certain types of technology services is *vastly* more efficient than retaining them in the United States; the savings might be the difference between paying $70 for a service and paying $0.20 for it. Of course, the savings are passed on to American consumers who can afford a far greater quantity of products for the same amount of money. See Dr. Belew’s blog at ZhonghuaRising
1 posted on 06/08/2006 8:31:52 AM PDT by G. Stolyarov II
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To: G. Stolyarov II

The World Is Flat!


2 posted on 06/08/2006 8:37:36 AM PDT by TheRake (Taxed to death in Michigan)
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To: G. Stolyarov II

"Of course, the savings are passed on to American consumers......."
Of course the savings are realized as greater profit for the corporations and the former employees struggled to afford a roof over their head.
Of course I come from the applied school of economics and not the theoretical.


3 posted on 06/08/2006 8:38:20 AM PDT by em2vn
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To: G. Stolyarov II

Hah! I can still load up a copy of Office 98 from 26 floppy disks cheaper than that.


4 posted on 06/08/2006 8:39:50 AM PDT by glorgau
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To: G. Stolyarov II
What would happen if India or China decided they would NOT build or service American PCs anymore and instead did their own?

They wouldn't dare. If they can do it for $.20 they are relying not just on cheap labor, but automation with cheap labor to keep the 'bots running. Someone else would quickly figure out how to do it for under a buck.

5 posted on 06/08/2006 10:44:18 AM PDT by c-five
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To: G. Stolyarov II

The important truth is that having individual computers for each employee with an individual copy of every possible application that might be needed is STUPID.

Can we please go back to dumb terminals?


6 posted on 06/08/2006 1:26:44 PM PDT by gura
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To: gura

Big Blue still sellin alot of big iron.

Wanna stay employed for the rest of your life and basically write your own ticket?



Learn Cobol.


7 posted on 06/08/2006 1:31:05 PM PDT by djf (Bedtime story: Once upon a time, they snuck on the boat and threw the tea over. In a land far away..)
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To: djf

I did COBOL in school but I ended up a UNIX admin (thank god). Everyone's coming back home! :-)


8 posted on 06/08/2006 4:38:58 PM PDT by gura
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To: djf
You must be kidding.

Tell me more, I'm interested.

Cheers!

9 posted on 06/20/2006 9:52:14 PM PDT by grey_whiskers (The opinions are solely those of the author and are subject to change without notice.)
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To: G. Stolyarov II
Hmm...where would that leave the IBMs and Dells?

IBM PC's are now in the domain of China and Dell is bringing back customer support to USA.

As a side note, I am a contractor for HP. It takes at least 30 minutes on the phone to India to get a password reset. I received an email notice that my password would expire in 30 days, 2 WEEKS AFTER IT EXPIRED!

I'm glad they pay me for my services and I don't pay them!

10 posted on 06/20/2006 10:06:39 PM PDT by operation clinton cleanup
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To: djf
Wanna stay employed for the rest of your life and basically write your own ticket? Learn Cobol.

My COBOL employment died after Y2K.... where do I send a resume?

11 posted on 06/20/2006 10:12:44 PM PDT by operation clinton cleanup
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