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Reply #16: Gates is mis-representing the problem [View All]

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kcwayne Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Apr-29-05 01:32 PM
Response to Reply #14
16. Gates is mis-representing the problem
Microsoft has operations in China, India, Russia, and other SE Asian countries. His product can be transported across the world instantaneously at very little cost. He can do research anywhere, and does so. There are no barriers to innovation of software based on geographic locale. Microsoft, and all major companies are extremely successfull in transporting their knowledge base and processes to any place in the world.

He does not need to bring foreign nationals that work for 10% of what Americans do to solve a lack of talent problem. He needs to lower the cost of operations in the US. He can bring in contractors through Tata (an Indian firm) at a fraction of what US based contractors cost. The presence of Tata, causes all contractors to lower their price.

Microsoft maintains a large pool of temp contractors to avoid the FICA, health care, and pension liability. If they added those people to their permanant staff, it would change the balance sheet and the stock valuation would be negatively impacted.

This is a money decision. It has nothing to do with the availability of talent. In 2 days and I could make calls to my associates and peers and come up with the names of over 100 software people that are either unemployed or employed in other fields.

I have advanced degrees in Engineering and Computer Science. My daughter will not be going into this field because the future is so bleak. She won't be a rock star either.
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