Monday, January 26, 2004

Seared and tossed to India and China

Sears CEO says Indians are smarter as he outsources IT.**

This statement might be taken out of context, but when you are paid millions, you should be worth the money. I think he spoke his mind.

"But I think, beyond that, to me, a very interesting trend right now is the whole non-U.S. opportunity that's available, and ... if you think about personal intelligence and drive being randomly distributed by population -- you know, there are four or five times as many smart, driven people in China than there are in the U.S. And there's another four or five, three or four times as many people in India that are smarter or as smart or have more drive. And if technology is now going to basically reduce location as a barrier to competition, then essentially you've got something like whatever that was, seven or nine times, more smart, committed people that are now competing in this marketplace against certain activities.
I don't care what he thinks. IMHO, If you outsource the majority of your IT infrastructure for a National US chain of stores, your looking for trouble. Especially when it bites you in the ass and you try and hire people back 10,000 people who have moved on (and would rather watch you sink than help). People are rather spiteful to what they consider backstabbers.

And these big CEOs and such wonder why Wal-Mart is doing so well. At least when Wal-Mart makes a cost cutting solution like this, they pass it on to the consumer by lowering prices and thus, they increase volume. Go figure. In the grand scheme of things, I have to agree with him. He points out a flaw in American society. Where individuals would rather work for the united autoworkers union. There you do not have to better yourself to move up. Most places in the US which are non-union reward people who strive to better themselves with either more education or added responsibilities (among other things). In India, the society is working to make it's people smarter and not dumbing down tests because the education system (this includes the parents responsible for the failing students) is so bad we can't get everyone who graduates high school to read.

I don't know what to think anymore. Who is right? The CEOs who have to make a business decision to chage for the better? Or the nationalist who wants a better life for his fellow countrymen?

If the story is still up, go read the entire thing here If not, e-mail me, I should have the whole thing around here somewhere.

** Reference


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