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IT Director

By silicon.com

Published: Tuesday 03 May 2005


Name

Anonymous


Location

Paris


Occupation

Business student (BA)


Comment

I suppose these layoffs are the logical consequence of IBM's insensitive 'On Demand' strategy. IBM wants its costs to be as variable as possible, and rather than having an expensive fixed overhead in a western labour force, it's much cheaper to have a low-wage workforce in the Orient.

Among the many problems with IBM's On Demand strategy are:

1. It's not what most companies want today.

2. The companies that IBM extols as great examples of On Demand are not the ones that would naturally occur to most people. (I gather in the UK that IBM names Boots the Chemist and Wimbledon tennis club.)

3. IBM isn't seen as an On Demand company itself.

4. IBM changes the definition of On Demand each year to 'prove' that it's making money out of the idea.

5. IBM has made On Demand an article of faith for its employees. All adverse comment is regarded as heresy. All negative market research is ignored.



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