IBM and Outsourcing.

Quote from EdgeHunter:

Two examples... my partner and i are a bit coded out after 10 years... love the Design and Architecture part of custom software dev but you get 'code burn' doing left brain logic all day for years...
Its why so many programmers are always pissed off for no good reason... IMO... Code Burn...
Example 1: Being burnt out - we tried working with an American Project Manger who was supervising our specs to an Indian company for XML and ASP.NET ecommerce work...
We only wanted them to code a simple VB.net ASP.net page that would pull data from a SQL Server Backend DB (TSQL queries) and push / load it into a text file and ask the user where he wanted to save it with a windows dialog box... Far from Rocket Science...
We waited for four months and watched them come up with - NOTHING - that worked or was even close to our specs yet the American Project manager worked with them all the time on other projects (which must have been extremely simple stuff since ours was not hard at all)...
Finally to prove a point my partner and I cracked out the whole solution IN 2 lazy slow careful HOURS and then emailed it to the project manager in disgust.
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OMIGOSH - I love this example....can you imagine outsourcing a complex trading platform ? (or even a SIMPLE one !)
 
Quote from Hydroblunt:

Have you ever considered that maybe your commission cut is crap and no quality worker wants to work for you because either A) better places to work at or B) can't make worthwhile money with you. Maybe anyone worthwhile is already working elsewhere and is happy at their position. You are getting the riffraff and you obviously have a revolving door policy, almost every commission base business does. The fact is that you are the one who is lazy and do not want to recognize that fact. To find quality contractors on pure commission base takes time & work.

Go hire a Mexican, whose cost of living is rock bottom and who will work for pennies, cause that is apparently what you need.
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I have found a way to really make more money recruiting physicians for hospitals and practices. Instead of giving away 50% of the fee to my contractors for finding a client, which can amount to $14,000 per placement, I have found a company in Manila in the Philippines where I can outsource the work of calling on potential clients. The firm charges only $57 per week per worker to work 40 hours/week Monday-Friday. So instead of giving up $140,000 per year to each of my contractors, assuming they do 10 deals per year, it will only cost me $3,000 per year to have a worker in the Philippines. This is totally amazing!!!

I can make sooo much more money now. The owner of the company in the Philippines pays his workers only about $1 per day and they speak perfect English.
 
Quote from Vinny1:

I have found a way to really make more money recruiting physicians for hospitals and practices. Instead of giving away 50% of the fee to my contractors for finding a client, which can amount to $14,000 per placement, I have found a company in Manila in the Philippines where I can outsource the work of calling on potential clients. The firm charges only $57 per week per worker to work 40 hours/week Monday-Friday. So instead of giving up $140,000 per year to each of my contractors, assuming they do 10 deals per year, it will only cost me $3,000 per year to have a worker in the Philippines. This is totally amazing!!!

I can make sooo much more money now. The owner of the company in the Philippines pays his workers only about $1 per day and they speak perfect English.
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Here is what you don't see:

1) They are charging you upfront and paying a salary hence it's no longer a commission based "job". The worker's standard of living is fulfilled from day 1 unlike your previous offers.

2) Who knows what the quality & results will be? Well actually, you will get what you pay for.

3) You pretty much gave them a way to pitch a new service to clients and created competition for yourself. In other words, you're next in line to be offshored.

The fact is that whatever you are offering to American workers is not paying the bills fast enough or shows the potential. Nothing more to it. Put your money where your mouth is, pay a draw and you will see a difference in the applicants. Pay a salary with bonus structure and you will see an even bigger difference. Case in point, FNYS vs whatever other prop firm you can think of.
Someone who runs a commission based business should know of its turnover characteristics. To derive that Americans are lazy because you went through 40 contractors is a very ignorant view. For all you know, some of them are working 2 jobs on the side. As the rest, how can you not expect that when you put up zero barriers or qualifications to get the job?

Regardless, you are exhibiting the same line of thinking that COOs, Operations VPs and Directors did years ago. Eye on the bonus, disregard any other issues and just force the concept. Years later, the numbers are still being massaged to distort reality and complaints suppressed.
Bottom line, you get what you pay for.
 
Quote from Hydroblunt:

Here is what you don't see:

1) They are charging you upfront and paying a salary hence it's no longer a commission based "job". The worker's standard of living is fulfilled from day 1 unlike your previous offers.

2) Who knows what the quality & results will be? Well actually, you will get what you pay for.

3) You pretty much gave them a way to pitch a new service to clients and created competition for yourself. In other words, you're next in line to be offshored.

The fact is that whatever you are offering to American workers is not paying the bills fast enough or shows the potential. Nothing more to it. Put your money where your mouth is, pay a draw and you will see a difference in the applicants. Pay a salary with bonus structure and you will see an even bigger difference. Case in point, FNYS vs whatever other prop firm you can think of.
Someone who runs a commission based business should know of its turnover characteristics. To derive that Americans are lazy because you went through 40 contractors is a very ignorant view. For all you know, some of them are working 2 jobs on the side. As the rest, how can you not expect that when you put up zero barriers or qualifications to get the job?

Regardless, you are exhibiting the same line of thinking that COOs, Operations VPs and Directors did years ago. Eye on the bonus, disregard any other issues and just force the concept. Years later, the numbers are still being massaged to distort reality and complaints suppressed.
Bottom line, you get what you pay for.
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People in the Philippines couldn't do the business themselves because they have to spend time with candidates, selling jobs, closing deals, and money for advertising, like $10k/year, to draw in candidates.

They speak English over there, so they may do quite well at acquiring clients at a cost of $57/week to me. For $1/day, there are people in this world that would break their back for you. For $2/day, they'll treat you like a king.
 
Quote from Vinny1:

They speak English over there, so they may do quite well at acquiring clients at a cost of $57/week to me. For $1/day, there are people in this world that would break their back for you. For $2/day, they'll treat you like a king.
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$1 a day is the line between poverty and extreme poverty. Even in countries like Nicaragua [second poorest country in the western hemisphere] you won't get anything more than unskilled labor for that or even $2 a day...

The kind of people you get for that kind of money don't speak 1 word of english, and they certainly have no clue as to how to use a computer.

If you need skilled workers you have to pay, be it in the US or in the third world. You will pay less in the third world, but not $1 a day.
 
October 14, 2011

SouthAmerica: Today I was watching Morning Joe on MSNBC and they had a group of people who were clueless about what has been happening to the job market in the United States.

If they had been reading my articles, then they would have a better idea about what happened to the job market in the United States in the last 15 years.

Tuesday, March 8, 2005
Outsourcing and the Impending Collapse of the US Dollar – By: Ricardo C. Amaral
http://outsourcingandthedollar.blogspot.com/


*****


This article was published also in:

Brazzil Magazine - March 2005
“Outsourcing is ruining the US and Brazil’s economy”
Written by Ricardo C. Amaral
http://www.brazzilmag.com/component...ng-is-ruining-the-us-and-brazils-economy.html


And on ArabNews (Saudi Arabia).


*****


This article published in Business Week magazine on April 2005 – It was written in response to my above article published on March 2005 in Brazzil magazine, and also in ArabNews.

Business Week - April 18, 2005
Cover story: “IBM Beyond Blue”
http://www.businessweek.com/magazine/toc/05_16/B3929magazine.htm


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A person that has no education and wants to earn $50 an hour for doing unskilled manual labor on a car factory, deserves to be unemployed.
 
Quote from eusdaiki:

A person that has no education and wants to earn $50 an hour for doing unskilled manual labor on a car factory, deserves to be unemployed.
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Agree....and that explains why the Chevy VOLT is not selling....the price is beyond reason.
What goes into a Chevy Volt ?
1) union wages
2) union pension
3) union fees
4) union benefits
5) retiree benefits
 
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