Saturday, November 15, 2008

Core competence be damned

Cost cutting zindabad. Well, this is what happened. Arent IT firms supposed to be focusing on IT? But the hotel industry here has made them create their own hospitality divisions, becaue outsourcing is too costly.

First the rooms were too expensive and the hoteliers rubbed their hands in glee.

As Bangalore faced a shortage of rooms and IT companies found it difficult to get rooms they took matters into their own hands. They began to build their training centres, rooms for trainees and then went onto build rooms for visitors - and some of them better than these very hotels which overcharge them and using many of their staff. Now they crib.

2 comments:

ggop said...

Even with good rooms at $150 a night here, Google is planning construction of hotel/corporate housing. At $350-$500 a night in Bangalore, duh?!!

Kavi said...

And i know for a fact that 5 star hotels lost talent to such captive hotels !

Now, that was the ultimate swipe !!