View Full Version : Motley Fool article on Dell/OKC



Pete
07-07-2005, 05:26 PM
It seems they are a bit off base in that most the jobs in OKC seemed to be geared towards sales, not tech support:




Dell Plays the Patriot Card
By Rich Smith
July 6, 2005

Around this time last year, I wrote a short column describing an emerging trend in outsourcing -- namely, a counter-trend to the popular (and simultaneously unpopular) practice of sending work out to contractors abroad.

Among the companies I discussed in that piece -- Motley Fool Inside Value pick Accenture (NYSE: ACN), Nike (NYSE: NKE), General Electric (NYSE: GE), and the like -- that have become famous (or infamous) for their use of offshore outsourcing, one name stood out from all the rest: Motley Fool Stock Advisor recommendation Dell (Nasdaq: DELL). Although those other companies derive cost savings from doing substantial work overseas, you're unlikely to have much occasion to call a Nike shoe factory in the suburbs of Manila, or to ask an Accenture or GE techie in Mumbai to write you some code. But if your computer is a Dell -- and there's about a one-in-five chance that it is -- you'll probably be on the phone eventually with a gentleman in Bangalore who's trying to explain to you why your automatic coffee cup holder isn't working anymore (or why it's not an automatic coffee cup holder). Whether you can't understand the customer-service rep or just don't like offshoring in general, you might find the discussion irksome.

Perhaps not for long, though. The company whose name is nearly synonymous with Indian tech support now intends to double the size of its customer service center in ... Oklahoma City. It may be a coincidence, or it may not, that Dell made this announcement on the first business day after July 4.

In explaining its prairie home expansion, Dell pointed to "the quality of the area workforce." But this Fool suspects that the low cost of living in Oklahoma -- and the competitive cost of labor -- had something to do with the decision. According to the U.S. Census Bureau, Oklahoma's median household income lies 15% below the U.S. average.

Given the options of again bucking the anti-offshoring tide and claiming a 20%-25% savings on operations abroad, or taking a domestic 15% savings plus a bonus of goodwill from its U.S. customers in general and its host city in particular, Dell made the obvious choice.

Dell's expansion is one more piece of evidence in support of the DiamondCluster International (Nasdaq: DTPI) survey results on offshoring, which we examined last month. And keep a close eye out for more news along these lines. If the anti-trend toward offshoring continues gaining strength, it will have implications not just for U.S. workers and their employers but also for companies like Infosys (Nasdaq: INFY) and Wipro (NYSE: WIT), erstwhile beneficiaries of offshoring.

Curt
07-07-2005, 09:48 PM
As long as Dell keeps jobs here in the U.S, that is the only computer I'll buy, I have one now and love it. I know so many people here in Detroit that work for Ford, or G.M that are going to buy Toyota because Ford and G.M are sending work overseas, while Toyota continues to build new facilities right here near Detroit (Ann Arbor) and are hiring people from Ford and G.M.

People, being in the auto industry, I hear everyday about more and more jobs going overseas, we need to support the companies that are putting Americans to work, even if it is a Japaneese company. The American companies dont care anymore. I know if I walked into the Toyota dealer with my Ford badge on after work one day, they would be happy to give me a very good deal on a trade for my F-150.

Karried
07-07-2005, 10:02 PM
I agree completely. Not to mention, when I call Dell in India - I can cross out about two hours from my day planner because I have to repeat myself a HUNDRED times so they can understand me... it's like a comic routine ' d? no b?' d as in dog ... oh okay press d? no, b ..what, I'm so sorry, can you repeat that? d - d as in dog ......ahhhhhhhhhhgggggggg

h, h as in hanging up now or on a bad day, s? NO, f !, as in f u, ha,ha ..

Curt
07-07-2005, 10:05 PM
I agree completely. Not to mention, when I call Dell in India - I can cross out about two hours from my day planner because I have to repeat myself a HUNDRED times so they can understand me... it's like a comic routine ' d? no b?' d as in dog ... oh okay press d? no, b ..what, I'm so sorry, can you repeat that? d - d as in dog ......ahhhhhhhhhhgggggggg

h, h as in hanging up now or on a bad day, s? NO, f !, as in f u, ha,ha ..
LMAO!!!!!!!!!!!!!

okcpulse
07-07-2005, 10:57 PM
Thank God I know how to build my own computers, and will soon be certified in computer hardware and software!

mranderson
07-08-2005, 08:22 AM
Frankly, that article was a bit of an insult. It made it sound like Oklahoma City is a city that companies locate in because it is a last resort. There was no mention at all of the advantages this city offers.

Dell would not be planning their second largest call center in the country, and the largest in Oklahoma City if we did not have something positive in their minds.

JOHNINSOKC
07-08-2005, 10:05 AM
I think people just assume things about this city when they haven't been here before. You ALWAYS hear newcomers say how shocked they are when they first visit. This city really should try to market itself better through television just like San Antonio and countless other cities do. OKC should be shown as a vibrant, up and coming major urban metro with lots of things to do, not the western, dusty town that most people around the country think it is.

Curt
07-08-2005, 10:10 AM
You are absolutley right John, before I ever went to OKC, I thought it was going to be a dust bowl also, but man was I surprised and it keeps me comming back. OKC needs to do more advertising around the country.

jbrown84
07-08-2005, 11:38 AM
Yeah I have always thought that while the state tourism board has done a very good job with marketing and branding Oklahoma "Native America", the OKC Conv. and Visitors Bureau has not done a good job promoting the city. I never see commercials, and the only print ads I see are cheesy and use stupid slogans like "how the west was fun"--and they don't use pictures. Use pictures of our attractions and our parks and stuff. This really is a much greener city than most of the country would imagine.

fromdust
07-08-2005, 08:02 PM
yeah well i guess the visitors bureau does not believe in the city like we do.