19 April 2008

Kaz imports and outsources cheap labour.

One of the easiest cheap and nasty ways to make a substantial quick profit, in the IT industry is to outsource cheap labour. Cheap labour is usually in the form unskilled migrant labour. Amongst other companies KAZ exploits the unskilled labourer.

Kaz exploited a deliberate loophole in the system, to outsource cheap unskilled labour.

Migrants, usually from IT churning countries, migrate to New Zealand. Since the migration laws between Australia and New Zealand are more lax, they then make their way into Australia, via the New Zealand back door. They are then employed at KAZ at a cheap rate, then outsourced at a premium. KAZ usually employs these people in the ‘fish bowl’ or data centre, so they are out of sight of the general public.

The cost of cheap unskilled labour has many pitfalls, one being that the customer usually pays for the mistakes that are being made. This is very evident, and most customers are very aware of this fact.

KAZ has not had any new clients in two years, and their stock values have dropped from $1.40 to $0.12, reflecting the confidence of the industry in KAZ. KAZ also struggled to make 5% profit in such a lucrative market. KAZ is a running joke in the IT industry.

read more at http://forums.whirlpool.net.au/forum-replies-archive.cfm/922176.html

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