A Journal for Western Man

 

 

 

 

$650-Billion Tech-Services Industry

Must Rethink, Says Infosys CEO Nilekani

Dr. Bill Belew

Issue LXII- June 8, 2006

 

 
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?

Editorial Commentary by Mr. Stolyarov: 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.

Dr. Bill Belew is a former Intelligence Officer for a Destroyer Squadron. He lived 20 years in Japan, where he started a language school for Japanese ECS. Dr. Belew teaches classes for a vocational school and online for a national university.

See Dr. Belew's blog, ZhongHuaRising, for news and discussions about business and current events in China.

This TRA feature has been edited in accordance with TRA’s Statement of Policy.

Click here to return to TRA's Issue LXII Index.

Learn about Mr. Stolyarov's novel, Eden against the Colossus, here.

Read Mr. Stolyarov's new comprehensive treatise, A Rational Cosmology, explicating such terms as the universe, matter, space, time, sound, light, life, consciousness, and volition, at http://www.geocities.com/rational_argumentator/rc.html.

 

 

 

 

 

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