IBM has maintained its profitability for 17 years by replacing its highly productive, highly motivated and therefore highly paid individuals with lower-wage, less-productive, less-motivated employees - this has maintained profits but it has not optimized them.
https://seekingalpha.com/article/4105749-1-chart-ibms-financial-engineering-revealed-workload-rebalancing?auth_param=1dr84o:1crfk8b:564ece539576fcb110d843605faaf03e&dr=1&utoken=631c59460324890dda81ef6b2b1365fa112ec2b9
Agree with the article.
This has nothing to do with the quality of resources, in general, in Brazil or Ukraine. It has to do with the type of work we send there and the total comp package we offer. We pay decent, but not great over there - the best and brigtest almost always pass once they hear the numbers. The type of work has a very limited creative and problem solving component - it's a turn off for the best resources over there.
Finally, there are cultural differences over there and certain expectations that we as American have. I've spent 8 months in Brazil and it's fairly normal for someone to show up 40 minutes late for a 60 min meeting. It's loosey goosey - they do not get upset about it but it drives us nuts... Heh, joys of globalization...
I know and agree . When I read the article I was wow this is so on point. Thank god my last day is Nov 15th I can no longer deal with all the uselessness of off shore cheap labor on a daily basis and the BS of upper management. Karma's a b--ch .. what goes around comes around.
Dead on accurate, you should see the people we have to deal with in Brazil, India, and now Ukraine. Not one of them possesses 1/5th of the skill and work effort of the US based employees they replaced.