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Duh!
Duh!
11/14/2017 | 12:33:45 PM
Not just automation
Don't underestimate Verizon's point about efficiency through network upgrades. A large percentage of the workforce carries union cards and wears hard hats at work every day. Fiber/DWDM/PON/Ethernet/IP networks are a lot less needy than their copper/POTS/TDM/SONET counterparts. Also, as Karl Bode likes to point out, certain Telcos have, um, relaxed their standards for maintaining copper plant.

Also, contractors don't count as employees. A lot of customer service jobs have been offshored. Labor agreements over the past few periods let them use more contractors for major projects than in the past.

-- Dan Grossman
brooks7
brooks7
11/14/2017 | 1:39:38 PM
Re: Not just automation
 

The lack of unions is one of the big advantages that the cable guys have.  I remember how much the unions hated FiOS because of the job reclassification.

I know the article focused on some AT&T numbers.  One thing that I wonder was how much of the reduction was a natural result of the integration of Direct TV.

seven

 

 
Unit
Unit
11/15/2017 | 9:38:49 PM
Efficiency Drive?

I don't think in many cases they are much more efficient, more just outsourcing and offshoring the inefficiency to make it cheaper.

Gordy779
Gordy779
11/17/2017 | 9:07:46 AM
Technology selection = efficiency of operations = adjustment of headcount = net margin increase
Very good article but it is not unexpected in that most companies always seek efficiencies of operation and technology is starting to deliver that capability.  This will continue and as AI becomes more appropriate that will also be deployed driving more efficiencies.   

I will note the metric of "revenues generated per employee" will become a financial icon that will compare one companies operations to another companies operations and that will reflect on the specific technology that a company deploys. 

For example, the efficiencies of a fiber/wireless based network versus a copper based network.  These costs will directly reflect in the "revenue per employee" number and will drive the deployment of new technologies for greater efficiencies!

 

Gordon Caverly, RCDD

Regional Vice-President

Mid-State Consultants, inc.

 
Gabriel Brown
Gabriel Brown
11/17/2017 | 9:43:50 AM
Re: Technology selection = efficiency of operations = adjustment of headcount = net margin increase
"revenues generated per employee" 

Just don't mention the contractors and out-sourcers the company uses.
Duh!
Duh!
11/17/2017 | 11:35:25 AM
Re: Technology selection = efficiency of operations = adjustment of headcount = net margin increase
Excellent point. In all likelyhood, Verizon's revenue/employee figure arises in part from their decision to deploy FTTH through a large part of their footprint, followed by downsizing their field workforce.

Gabriel Brown's point is also well taken. All those labor costs still show up in the financials, in gross margins, or  capex. It's not as if the companies are lacking for incentives to contract out as much work as possible.
Phil_Britt
Phil_Britt
11/24/2017 | 11:48:09 AM
Re: Technology selection = efficiency of operations = adjustment of headcount = net margin increase
But with contractors and outsourcers, there isn't the cost of benefits (which not all contractors offer to employees) and other costs. I interviewed a bank president one time who mentioned that one reason to use technology over a human, even if the costs were similar, is that the technology can't come back and sue the bank about termination at a later date (even if lawsuit is frivilous, still costs money to defend).
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