What these companies don't factor in...

What these companies don't factor into their little "Shall we move?" spreadsheets is the cost of losing people who have worked for them for anything up to almost 20 years.

As was demonstrated with Dell's outsourcing to India, the result was catastrophic. They went from the company with the best technical support around to being a complete joke with outright worthless tech support overnight and my last three employers were all Dell shops that have now moved to other suppliers as a result of the change.

Dell can't stem it's downward spiral by repeatedly doing what put it into that spiral in the first place. If it wants to see gains it needs to accept a cut in profit margins temporarily to pay for workers that are actually competent and skilled. Once they have that competent workerbase back customers can have confidence to go back to them again, but if they persist down the route of paying less and getting less, then, well, it's going to be their end eventually.

You cannot kick out 1000s of workers that have years, even decades of experience in your company and just pick up 1000s of new workers who have never worked the business before and expect things to carry on as they were. There's going to be failure after failure that'll cost dearly in the end, again, as demonstrated by their tech support move to India.