The Globalizing of FedEx

Revolver

Across the corporate landscape, a growing chorus of insiders argues that the promised cost savings from outsourcing are a dangerous illusion. What starts as a strategy to reduce labor costs, they contend, often spirals into a cycle of inefficiency, product degradation, and financial mismanagement that benefits only a select few and actively harms the company.

At the heart of the issue is a fundamental miscalculation. The strategy frequently involves replacing small, highly skilled domestic teams with large, inexpensive offshore teams. An insider with firsthand experience claims this math never adds up. “Hiring 60 people who can’t do the job is vastly inferior to two people who can,” they stated. This approach leads not to savings but to massive cost overruns as unqualified hires, sometimes with fraudulent resumes, require constant management and produce subpar work. The projects they manage are plagued by delays, bugs, and production incidents, erasing any initial savings on wages as laid out in the original bid. As more of the team gets hollowed out, we see more production incidents, bugs, quality issues, et cetera. As the load increases, the people who can shoulder it burn out and churn, exacerbating the problem.

Outsourcing and mass import of H-1B frauds put a company into a death spiral. Products and services never improve once this process starts. It isn’t cost cutting. It makes you leaner the way cancer makes you leaner, because that’s what it is. I’ve seen this firsthand and quit multiple lucrative gigs because of this. More

10 Comments on The Globalizing of FedEx

  1. And how is fed-ex’ing kitty litter cheaper than buying locally sourced litter, unless there is some supplemental subsidized method of diverting costs that most of us non-corporate payers are not aware of?

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  2. The global corporation I work for is doing the same thing.
    New executive “geniuses” who know nothing about our business or market were brought in as “saviors” and are flipping the organization on its head. Laying off everyone who knew how to engineer good stuff, and hiring more Apus and DEI morons.
    Quality is plummeting. Customer service either involves a bot responding to you with non-answers, or Apu in India speaking to you in jibberish.
    Apu was the Kwik-E-Mart guy in “The Simpsons”.
    https://youtu.be/Oxb59m3bREU
    .

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  3. I refuse to work with the -1B “engineers” in my fortune 200 company. Not going to waste my time.

    Been here long enough that when I send the ‘Nope’ email up the chain they listen to the guy wearing boots that has to make it work.

    When I’m gone, 2~4 years tops, I don’t know if my replacement will have the balls to tell corporate they won’t work with idiots.

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  4. My organization has an opening for a Python programming to do scripting conversion work. I’m to partake in the interviews; so the recruiter sent my boss and I a batch of resumes. 75% of the resumes were from people living in India 5 years ago. Half of those Indian resumes didn’t have Python experience at all. Only one US citizen resume was sent.

    Now you can’t tell me that 75% of the Python coders out there looking for work are Indian and less than 5% are US citizens. This is just more racist bullshit favoring the shit worshiping hindus over whites. Those fuckers do that in every IT shop they get a decent foothold in. After that, they ONLY hire Indians.

    And when and Indian gets hired, his wife and kids go on SNAP because not only do we import poverty, incompetence, and unhygienic turd world dysfunction, working Americans have to feed, house, and provide free health care for their replacements too.

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  5. Did contract IT work for a big hardware chain at a time they switched to offshore. First try ended up a mess, and the local IT team had to fix it. Second attempt, same as the first. Corporation then said it was such a success they were going to go outsourcing in a big way.
    MBA training, telling the admin types not to get into the weeds. Problem being, they get so far away they no longer know the weeds even exist, and make decisions based on lala thinking.

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