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M*Modal

Likely related to the tax bill - sm

Posted: Mar 20th, 2018 - 10:27 am In Reply to: hit the nail on the head - ratass

The timing fits. If offshoring has become more expensive, then the ICs are probably helping with damage control by being willing to work, training VR, for very low pay with no benefits on accounts scheduled to be offshored. My guess is they don't necessarily need to get rid of all their employees, and not all their accounts are destined for India, but they needed a way to offset the higher cost of offshoring and these ICs make sense. My guess is once they have gotten situated where costs are similar to the way the were before the tax bill shook things up, things will settle down for everyone. Who knows where this will all end up, but the timing can't be a coincidence.

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