Indian supremes demand $573m in Nokia-Microsoft phactory selloff deal India's Supreme Court has ordered Nokia to hand over a $572.5m guarantee before it can give the keys of one of its biggest manufacturing facilities to Microsoft. The order stems from a tax dispute over the plant in Chennai and upholds the verdict of the Delhi High Court, Reuters reported. The Finnish firm originally offered …
It's not supposed to be cost-effective over the long-haul - it's supposed to be cost-effective over the next few quarters, where the 'reduced costs' and 'increased profitability' look good on the accounts, and upper manudjment can claim that it's full of mutant levels of uber-genius business talent, which legitimises a tidal wave of bonus cash.
Anyway, you can always compensate for increased costs with increased layoffs.
With all the layoffs, at some point, the geniuses are going to have to run the company entirely on their own. Doubtless the business schools are already primed to offer the MMBABA degree - master of MBA-business administration.
But it will all be fine. All the C-level jobs will be outsourced to India, and the whole thing will be run by the new PCEO (Paramount Chief Executive Officer), who will soon need a PCOO, PCFO and so on.
At some point, someone will notice that you now need an MBA in operations to get a job sweeping floors, and the complaints about grade inflation will start.
Yeah, I remember working for a company that was so obviously going down the U-bend,
Drinking in a bar with the bosses, where one of the managers lit a cigarette with a £20 note. The same day they'd laid off about a third of the workforce, leaving 6 of us to hold the fort.
Then, some 'cunning stunt' by a salesman convinced them to use factoring to enhance their cashflow.
Yeah. Does. Until the customers realise "Factoring" == "Cashflow Problems" and left in droves.
Wondering if this escrow thing is a bit of a trick, to scupper the whole deal? It'd work..
Looks like the Chinese and Indians are on here down-voting you.
Off-shoring is not always bad. The problem comes because there is a lack of talent everywhere you go. The first people to offshore hire all the local talent, and then as you get into second tier standards drop. Meanwhile it has become fashionable and people start to offshore things that should not be offshored.
I used to liken it to farmers and golf courses. Farmer A has some poor land and builds a golf course. He gets rich. Farmers B,C,D and E notice this and decide to build golf courses. They may not even have suitable land, but he got rich so it must work. Before long they are offering free membership and even allowing women in the bar. Customers of Farmer A notice and so he has to reduce his prices. Before long, all the golf courses are losing money.
It's the law of supply and demand, but adapted for the minds of management.
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