Best Buy is in trouble you know. It’s in the news all the time. I wrote a big column about it myself last year. Same store sales have suffered, corporate employees are being laid off, the big U.S. electronics retailer is pulling out of Europe. Best Buy management is in turmoil. The founder leaves in a huff, then tries and fails to take the company private, and is now making nice-nice with the same management he previously reviled. There’s a new head of stores (I wish him well) who thinks the answer is price matching, better sales training and paying workers to sell more stuff, which sounds like commissions […]
I heard from dozens of readers this morning about a message IBM sent to its current employees concerning their 401K plan — changing it from a contribution in every paycheck to a single contribution at the end of the year. Of course if you are laid off that means no annual contribution, less retirement savings, but a real bonus to the company. This, in itself, isn’t worth a column. It’s just Scrooge IBM being more Scrooge-like in search of that 2015 earnings target. What is worth a column is putting this news in the context of IBM having failed its recent internal security audit, which should concern IBM customers.
The H-1B visa program was created in 1990 to allow companies to bring skilled technical workers into the USA. It’s a non-immigrant visa and so has nothing at all to do with staying in the USA, becoming a citizen, or starting a business. Big tech employers are constantly lobbying for increases in H-1B quotas citing their inability to find qualified U.S. job applicants. Bill Gates and other leaders from the IT industry have testified about this before Congress. Both major political parties embrace the H-1B program with varying levels of enthusiasm. But Bill Gates is wrong. What he said to Congress may have been right for Microsoft but was wrong for America and can only […]
The theory of outsourcing and offshoring IT as it is practiced in the second decade of the 21st century comes down to combining two fundamental ideas: 1) that specialist firms, whether here or overseas, can provide quality IT services at lower cost by leveraging economies of scale, and; 2) that offshore labor markets can multiply that price advantage through labor arbitrage using cheaper yet just as talented foreign labor to supplant more expensive domestic workers who are in extremely short supply. While this may be true in the odd case, for the most part I believe it is a lie.
Back in April I wrote a six-part series of columns on troubles at IBM that was read by more than three million people. Months later I’m still getting ripples of response to those columns, which I followed with a couple updates. There is a very high level of pain in these responses that tells me I should do a better job of explaining the dynamics of the underlying issues not only for IBM but for IT in general in the USA. It comes down to class warfare.
