Outsourcing is Great

[MarillionFan]

"When I graduated (donkeys' years ago admittedly) Logica mopped up all the muppets off our course who couldn't get a job anywhere else. Talk about not fussy. "

Unbelievable. Everyone is a clone.

I feel sorry for the graduates. I had discussions yesterday with some senior bods, where I went on the attack

"How come you put people in jobs where they are not qualified and bound to fail?"

A."Cause they're cheap and we make more money off them!"

Fair enough.

[trajectory]

Yep, the guys who went to Logica were immediately shipped out to clients - no training, nothing, charged out at £XXX quid a day.

[thunderlizard]

Share price 1 month after announcing a deal is a terrible way to measure "success". It's long enough to still catch the immediate investor "wow" factor, but not long enough for the work to get under way and for things to start going wrong. All is proves is that investors think outsourcing is good: not that it actually is.

[ZATHRAS999]

So what is the share price 1 year or 2 years down the line.

All these promise savings/greater profits which is what the market is reacting to. What happens however in the near half of Outsourcing projects that do not result in savings. Costs go up, savings down, ability to react to market changes slowed down.

There is a reason why nearly half of CEO's want to cancel Outsourcing agreements, or are dissatisfied with them.