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Originally Posted by striperman36
Excellent articles Pete G. A must read for anyone in business today.
In one word, it is greed or capturing as much share as possible, that drives any large organization.
My industry IT, has been suffering a similar fate, my consulting rates have fallen from a high of 400 per hour USD in 1997 to a 'suggested' rate of 66.50 in the same organization in that 10 years primarily due to globalization of partners. In most cases all but forcing the supplier of choice to be the offshore provider
Large firms like GE, SSBT, AIG, Marsh Mclellan, Fidelity, WalMart lead the shift of IT resources, primarily I believe to maintain proft margins while the cost of services to the retail customer continues to fall as the result of competition in the marketplace.
So are we caught in a vicious cycle of searching for the lowest price for goods and services, while cannibalizing our own domestic economy? An interesting discussion for sure and one that seems to have no historical parallel, except perhaps in the later years of the Roman empire.
Bill
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It's definitely a fascinating business model, especially if you're in the retail industry. When I say it's genius, I really believe that. Hell, I'd probably do the same thing if I had the leverage. Bring lower prices to my customers while protecting my margins? Sounds great to me. But it is dangerous and you word it very well though when you said "So are we caught in a vicious cycle of searching for the lowest price for goods and services, while cannibalizing our own domestic economy?" That is exactly what I feel it is. The numbers SHOW that it is. And I think it will change the US economy for years to come, and I have to doubt it will be for the better. Innovation within our country and increased minimum wages in upcoming nations will probably be the only thing that slows it down. If it doesn't I almost feel it will be the beginning of the end for the US as a superpower if we're not already on the downslope. All countries and empires before us have risen and fallen. No reason to think we won't do the same....
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