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Thursday, January 10, 2008

Paying For Outsourcing

Outsourcing my burdensome tasks is very appealing, and I have already begun to make inquiries about a couple of specific tasks I want done. But even though the Indo-Asian outsource firms tend to have lower labor rates than comparable US firms, they still don't work for free. So I need money to pay for them.

I don't yet have products or services that generate regular, dependable income that can pay for these projects, and I don't want a net add to my monthly expenses. The idea is to make things better, not worse. So what to do?

I started with a review of the monthly charges for business services I already use. There was plenty of fat in there. I immediately called Sprint and knocked $90 off my monthly cellular bill. I contacted my shopping cart service (for another site I run) and downgraded the service to a Basic package for a savings of $40 per month.

That $130 will get me a Basic-10 package at GetFriday.com, which includes 10 hours of labor per month for whatever tasks I need. I've identified another $99 monthly fee that I can probably eliminate outright, but I'm not sure just yet. And I think I can move a couple of small loans to one of those 0-interest-for-a-year credit card deals to free another $40-$50 per month,

With about an hour of effort I've freed $130 and identified another $140. That's enough to get me 20-25 hours of labor per month for various projects. That's a good start.
Posted by: Send an e-mail to Terry Frazier Terry Frazier at 5:10 PM  | Permanent Link  | Trackback URL | 
Categories: Automation, Business & Finance, Globalization


Tuesday, May 15, 2007

Steve Hannaford Tells Us Why Chrysler is Dead

Chrysler logoThe US auto industry is in turmoil - rising gas prices, changing buyer tastes, stiffer environmental laws, and massive labor costs, among other things - have cost US automakers tens of billions in losses in recent years. And now the pompous jackasses at Daimler-Benz have killed Chrysler. It's bad enough that my beloved IBM ThinkPads have been sold to Lenovo - I can't even imagine buying a Chinese-made Jeep! Chrysler was in trouble when Daimler bought them in 1998, but the Germans were supposed to make it better, not spend $40 billion to make it worse.   [More...]
Posted by: Send an e-mail to Terry Frazier Terry Frazier at 9:00 AM  | Permanent Link  | Trackback URL | 
Categories: Business & Finance, Globalization


Thursday, May 10, 2007

IBM Rumored to be Planning Unprecedented Offshoring Switch for 2007

I worked for IBM from 1995 to 1998. During that time I met some great people and had the privilege of working on more than one world-class project. As part of the benefits package I was allowed to buy IBM stock at a discount, and I did so. A few years ago I sold the stock off, as it had stagnated for a while and my general fondness for the company had dwindled. I still have friends there, many of them working for IBM Global Services. Now Robert Cringely reports that Big Blue is planning to axe more than 100,000 people from IGS, moving all the work offshore:

I, Cringely:The Pulpit - Lean and Mean

[...]
The IBM project I am writing about is called LEAN and the first manifestation of LEAN was this week's 1,300 layoffs at Global Services, which generated almost no press. Thirteen hundred layoffs from a company with more than 350,000 workers is nothing, so the yawning press reaction is not unexpected. But this week's "job action," as they refer to it inside IBM management, was as much as anything a rehearsal for what I understand are another 100,000+ layoffs to follow, each dribbled out until some reporter (that would be me) notices the growing trend, then dumped en masse when the jig is up, but no later than the end of this year.[...]

This cannot be good. As Cringely notes, offshoring of this scale creates massive communication and support problems - at least if the customer is in the US. My experience with BellSouth's lame, dysfunctional, globalized tech support has been a disaster. Dell, same story. In fact, if you have ever had a good experience with offshore tech support I'd like to hear about it. But more importantly, if Cringely is right IBM management is going to axe 100,000 jobs knowing full well that it may cripple the company. I don't care if the stock price rockets upward for some brief period. I'm glad I no longer have any financial stake in Big Blue.

Posted by: Send an e-mail to Terry Frazier Terry Frazier at 10:17 PM  | Permanent Link  | Trackback URL | 
Categories: Business & Finance, Globalization, Productivity

Don't Plan a Vacation in Nigeria

Not that you would, but don't make travel plans for Nigeria any time soon. Via Jeff Vail at Energy Intelligence

Nigeria Escalation

Energy Intelligence Note: 9 May, 2007

The situation in Nigeria is escalating--as expected, geologically-driven declines in oil production are spawning geopolitically-driven increases in disruptions from "above-ground factors." The recent attacks on major oil pipelines in Nigeria cut all oil flow to AGIP's Brass Export Terminal, taking a further 200,000 barrels per day off the market. On top of that, take a look at the latest unclassified figures on kidnappings in Nigeria, courtesy of the CIA:

2006:
Total Hostages (Unresolved): 66 (0)
American Hostages (Unresolved): 0 (0)

2007:
Total Hostages (Unresolved): 106 (17)
Amercan Hostages (Unresolved): 17 (5)

And 2007 is only half over! That represents a rougly 200% year-on-year increase in total hostages, and a huge leap in the "value" of these hostages, as reflected by the sudden shift toward higher-skill and western workers, as shown by the sudden prevalence of American hostages.
Posted by: Send an e-mail to Terry Frazier Terry Frazier at 9:15 PM  | Permanent Link  | Trackback URL | 
Categories: Globalization, Security
Terry W. Frazier
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