Dell brings support back to the US.
 

I think this is the best thing that could happen right now to a large US company.

http://www.pcworld.com/news/article/0,aid,113681,00.asp

Could this be a sign of more jobs comming back to the US?

Re: Dell brings support back to the US.
 

I think you linked to the wrong article. That took me to an AMD vs. Intel page.

Re: Dell brings support back to the US.
 

fixed. my bad

Re: Dell brings support back to the US.
 

Well..... http://www.forbes.com/facesinthenews...acescan05.html

Re: Dell brings support back to the US.
 

It just temporary, they will never bring all support back to the US, it just costs the company way too much.

Re: Dell brings support back to the US.
 

wel, maybe if our economy wasn't in the dumpster they would be more inclined to source work from the U.S.

but on another note, my roommate from a year ago had this dell computer and he called in for tech support several times when his computer crashed and he always got some indian guy, so he started asking for someone who speaks english and finally moved to american. it was funny cause the indians would say, "i speak english" and of course they didn't very well.

Re: Dell brings support back to the US.
 

.. our economy isnt in the dumpster and even it it was better than it is now, outsourcing is always going to around. Cheap labor that saves the company ALOT of money is much smarter in the long run... I know that alot of people say it takes away from jobs here but business is business.

I agree that they shouldnt be outsourcing tech though, especially if you cant understand a freaking thing they say. You can hear a major accent but there name is "Bob" haha.

Re: Dell brings support back to the US.
 

Care to expand on what economic figures you are using for that statement?

Re: Dell brings support back to the US.
 

Our current economic structure has nothing to do with this topic. Or at least very very very little. These choices to bring current us jobs to other countries are mostly made up by 2 sets of info.

The first is the obvious desire to increase profits within a company, and it's the greedy little bastards at the top of the food chain in the company that make those choices. The downfall is that they already make a ton more $$$$ than the people who actually make the money for them and it will eventually cost those people some jobs.

The second is the low labor costs of these other countries. India, China, ect ect has the ability to use current technology and their low labor cost to comeplete these same jobs for a significant amount less. In todays economy the language barrier is the least of most business concerns.

Re: Dell brings support back to the US.
 

Please also keep in mind that it is not only the fat-cats in a corp. that force jobs overseas, but it is also the American consumers. We keep demanding lower prices, and cuts need to be made somwhere. Profit margins are very slim for most things we buy, incuding PC's due to such stiff competition.

Re: Dell brings support back to the US.
 

Absolutely correct. With all of us demanding the cheapest possible prices, all the works is being sent somewhere where people aren't demanding high pay and low prices. Silly Americans we are.

Re: Dell brings support back to the US.
 

Its a viscious circle, but thats why so many American companies are offering the the one thing that can't be outsourced (for the most part)...services rather than products.

Re: Dell brings support back to the US.
 

I don't think consumer demand for low prices plays as big of a role as you think. In fact I'm betting it's pretty insignificant. Walmart doesn't have low prices for the benefit of the consumer. They're low because they want to beat their competition.

Look at industries that have a monopoly like music, broadband, phone companies etc. Their prices don't budge until there is competition.

Companies offshore as a way to lower costs, which can be used to increase profits and/or under cut your competition. They're not doing it to give you a good deal.

Re: Dell brings support back to the US.
 

I'm sorry, but you missed on every one of your points. You'd be very surprised at just how much time and money cable companies (for example) spend on pricing research. There is a certain point on the demand curve that maximizes their profit. If there wasn't, why not just jack up the price to $100/month for basic cable? The answer is simple, there would be very little demand at that price. Consumer demand for low prices plays a HUGE roll actually, if it didn't, they woudn't need to continually drop their prices in order to remain competitive since it does nothing but hurt all competeing companies by lowering their profit margins.

Re: Dell brings support back to the US.
 

Its all about companies spending less in order to make more. The company I work for is currently undertaking offshore relations. Its not necessarily all about low price, but in order to be the lowest you need to produce at the lowest cost. And that is what offshore business does. Maximizing your profits from low cost production.

Also competition is very key, in order for a company to survive it needs to either lead the way to low spending costs or follow competition companies, in order to win the pricing war. If one company goes overseas and saves a ton of money which in turn lowers their final price to consumers, other companies are going to have a heck of a time catching up to the lower price without affecting their revenue.

BTW walmart was one of the first major companies to outsource a majority of its products and services. That is why their prices are very low. (Fact from Marketing class a couple weeks ago) :)

Re: Dell brings support back to the US.
 

The demand for the general consumer to get lower prices has an effect, but it's not the one related to the direct answer. Prices can be cut while keeping all these jobs here in the US. But cutting costs lowers profits and resources. Both human resources and material and generic resources. Thus jobs getting cut would happen either way with a lowering of costs to the end consumer. The low labor rates that drive the industry outside our borders is still a direct result of todays business man or corporate boards filling the need to keep their paycheck at a steady rate or have them increase.

Consumer demand for low prices plays a small role when you really think about it. The largest demand for a product to have it's prices cut is currently still a large public war. GAS. We bitch, moan, cry, complain. It's all over the news. Mr Bush said it himself the need is there, and the answer is to put more crude oil into the market and lower prices. But this will not happen cause then the overall profit margins of those in control will fall. If the customer demand for cost cutting plays such a huge role then this would be the largest impacted area we would have seen a cut in.

When we look at areas like Dell it's not about products and what they cost. It's the telecommunication / cust service area, and not an actual demand for a consumer product. The simple fact in this case in India and CHina can work more for less. And ultimatly keep the currently large pockets..... PHAT. With P.

This is a subject we can roll on for hours and hours with tons of differant situation for every market and corner of the world.

And fuck, it feels good to have some regular intilectual decussion!

Excuse the spelling, ;)!

Re: Dell brings support back to the US.
 

Its quite aparent that we all are coming from different standpoints as far as the economy is concerned. I could make strong arguments against all of Allan's points that conflict with my previous thoughts, but I'm getting tired of typing at the moment so I'll just :D

Re: Dell brings support back to the US.
 

I think we're arguing the same thing. The difference is you interchange "demand" with "demand for low prices". To me "demand for low prices" makes it sounds like Walmart sells Mobil 1 for $1-$2 less because that's what I (the consumer) want and they're doing it because they love me. My point is they're doing it to undercut competition (which is exactly what we both posted), I guarntee the moment that competition is eliminated the price goes up or at least stops going down.

Re: Dell brings support back to the US.
 

Alan I disagree with the loan fact that companies leaders are getting all the money and that they are greedy bastards...

It all comes down the competition. How is a company X supposed to keep up with company Y if they are saving money by sending jobs over seas that will cut salary costs in half? One company does it and the rest follow in order to survive. The leading company will be the one that has the head start, but that doesnt mean they will always lower prices. It will also enable that company to do more internally- whether it be research or develop new products.

Sure in the long run CEOs will up their paycheck, but its not instantainous. And uping paychecks is not the lone purpose of outsourcing. For a successful company I would say its a very smart move, especially against competition.

Dell does it so they can save money and develop better and more products. They would rather save money on support services and use it for their product development, etc.

Re: Dell brings support back to the US.
 

I guess I did make it out to be my main fact, but I also don't think it's the loan fact. Also when I state they are in it to increase the size of their pockets I also want to state the fact that this also means generate more income and create more profits as a whole for the business. This is the means in which business survive. A large company like Dell has to keep stock holder happy, investors happy, customer happy, and the B.O.D are the one who also woudl like to do all this and keep their job and current lifestyle. A smaller company will make cuts to also put money in it's pocket to grow and compete.


It breaks down into 2 dilemas.

#1 - The goal in business is to gain financial freedom and succeed. Not to fail and lose money.

#2 - Studies today also show that value is the number one concern of US consumers of a product rather than price. A target market that reaches to the middle class and up will not see a customer base who is concern primarally over price, but rather the value of the product or service that they are paying for. Dell is getting flack since this value has dropped within their customer and tech service. Many blame the lang barrier though.

Everythign we have gone over is viable info depending on the product, target maket, value, price, competition, and supply and demand.