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Outsourcing burns my arse!

Discussion in 'The Lounge' started by dontoe, Jul 7, 2005.

  1. dontoe

    dontoe 3/4 ton status GMOTM Winner

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    I had a problem with my "New" laptop last week. Wouldn't boot up. When ya get the Bios screen, ya can hit F-12 and run a self-test diagnostic and it came up with a failure code and a description of the fault. Well, I called Dell tech service and the Pakistani or Indian was the dumbest SOB I have ever dealt with! I told him " 'ell feller, I know more about computers than you do, let me speak to your manager" !!! HE HUNG UP ON ME!!!
    Got my rage calmed down and called back and a bit more knowledgeable feller told me what I already knew, the hard drive had a bad sector and would have to be re-formated or more than likely replaced. Duh!!!
    Anyway, I ordered a new laptop and turned the problem one over to a friend to replace the HD and migrate the data to the new HD. Hope they fired the dumb SOB I first dealt with!

    All this leads to a news item on "A Motely Fool" I ran across:

    Dell Plays the Patriot Card
    By Rich Smith
    July 6, 2005

    Around this time last year, I wrote a short column describing an emerging trend in outsourcing -- namely, a counter-trend to the popular (and simultaneously unpopular) practice of sending work out to contractors abroad.

    Among the companies I discussed in that piece -- Motley Fool Inside Value pick Accenture (NYSE: ACN), Nike (NYSE: NKE), General Electric (NYSE: GE), and the like -- that have become famous (or infamous) for their use of offshore outsourcing, one name stood out from all the rest: Motley Fool Stock Advisor recommendation Dell (Nasdaq: DELL). Although those other companies derive cost savings from doing substantial work overseas, you're unlikely to have much occasion to call a Nike shoe factory in the suburbs of Manila, or to ask an Accenture or GE techie in Mumbai to write you some code. But if your computer is a Dell -- and there's about a one-in-five chance that it is -- you'll probably be on the phone eventually with a gentleman in Bangalore who's trying to explain to you why your automatic coffee cup holder isn't working anymore (or why it's not an automatic coffee cup holder). Whether you can't understand the customer-service rep or just don't like offshoring in general, you might find the discussion irksome.

    Perhaps not for long, though. The company whose name is nearly synonymous with Indian tech support now intends to double the size of its customer service center in ... Oklahoma City. It may be a coincidence, or it may not, that Dell made this announcement on the first business day after July 4.

    In explaining its prairie home expansion, Dell pointed to "the quality of the area workforce." But this Fool suspects that the low cost of living in Oklahoma -- and the competitive cost of labor -- had something to do with the decision. According to the U.S. Census Bureau, Oklahoma's median household income lies 15% below the U.S. average.

    Given the options of again bucking the anti-offshoring tide and claiming a 20%-25% savings on operations abroad, or taking a domestic 15% savings plus a bonus of goodwill from its U.S. customers in general and its host city in particular, Dell made the obvious choice.

    Epilog:

    Glad I stuck with ordering a new Dell instead of changing manufactors, more happy about Dell using Okies for Tech support. Got my first Dell in '98 and a Texan Tech walked me through some problems that year, he knew his chit!!!
     
    Last edited: Jul 7, 2005

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