B&N to close Nook offices

[murg]

Originally Posted by Fbone

Is Nook still a B&N core product? They outsourced their tablet to Samsung.

Considering all the technical issues B&N and Nook have been having (one of which you are experiencing), perhaps using this new company will be an improvement. B&N doesn't appear to be getting much (or satisfaction) from their 99-person IT team and $13+ million each year.

It will definitely not be an improvement.

If B&N was moving the group offshore because the IT staff were far superior, then there may have been some improvement. For example, Kobo moved a bunch of development to Ireland specifically because a group there had better skills in the ecommerce world, and we've seen some improvement with Kobo.

But, since the move seems to be wholly a cost-savings move, then definitely not an improvement. The outsourcer will be under a mantra of "how cheaply can we fill the minimal amount of contracted services and places".

[tomsem]

Originally Posted by murg

It will definitely not be an improvement.

If B&N was moving the group offshore because the IT staff were far superior, then there may have been some improvement. For example, Kobo moved a bunch of development to Ireland specifically because a group there had better skills in the ecommerce world, and we've seen some improvement with Kobo.

But, since the move seems to be wholly a cost-savings move, then definitely not an improvement. The outsourcer will be under a mantra of "how cheaply can we fill the minimal amount of contracted services and places".

Outsourcing to India is not the bargain it once was, wages are rising, especially for the best people. And if customers abandon the platform (because of poor service or simple lack of faith in its continuance) then Nook will be right back where they started (losing money).

[Fbone]

Originally Posted by murg

It will definitely not be an improvement.

If B&N was moving the group offshore because the IT staff were far superior, then there may have been some improvement. For example, Kobo moved a bunch of development to Ireland specifically because a group there had better skills in the ecommerce world, and we've seen some improvement with Kobo.

But, since the move seems to be wholly a cost-savings move, then definitely not an improvement. The outsourcer will be under a mantra of "how cheaply can we fill the minimal amount of contracted services and places".

By improvement do you mean higher prices and cessation of promo codes? Joking aside, Kobo Software Ireland was opened in 2012 with a staff of 30.

B&N had a staff of over 100 since at least 2009 and customers have reported numerous issues over the years continuing through today. B&N saves, at minimum, high salaries, health insurance costs and office rents.

[murg]

Originally Posted by Fbone

By improvement do you mean higher prices and cessation of promo codes? Joking aside, Kobo Software Ireland was opened in 2012 with a staff of 30.

These are marketing decisions, not technical ones.

The website has gotten more stable. And some of the most glaring issues, for Kobo at least, have been resolved (multi-tabbing, etc).

[fjtorres]

Originally Posted by tomsem

Outsourcing to India is not the bargain it once was, wages are rising, especially for the best people. And if customers abandon the platform (because of poor service or simple lack of faith in its continuance) then Nook will be right back where they started (losing money).

As the CNBC report stated, they expect to save $13M on sales of (they hope) $150M.
Also, B&N explicitly stated the move was to improve financial performance.

There *is* a possibility of somewhat improved *management* because the outsourcing reduces the number of B&N managers in the loop. That mighg rezult in addition by subtraction.

[Fbone]

Originally Posted by murg

These are marketing decisions, not technical ones.

The website has gotten more stable. And some of the most glaring issues, for Kobo at least, have been resolved (multi-tabbing, etc).

I remember the last several contests not functioning properly, a couple ended early. And we have received promo codes that are invalid.

Marketing decisions forced by higher costs? In any case, Kobo is not profitable so I expect them to continue their cost saving measures.

[fjtorres]

Kobo's finances are different from B&N: they have to share their revenues with their local partners and even though (by all reports) they don't pay out a large percentage, it is coming straight from their cash flow. Add in the Adobe tax and they are at a double competitive disadvantage. And that is just the beginning of their issues.

Rakuten does them no favors.

[murg]

Originally Posted by Fbone

I remember the last several contests not functioning properly, a couple ended early. And we have received promo codes that are invalid.

Marketing decisions forced by higher costs? In any case, Kobo is not profitable so I expect them to continue their cost saving measures.

I said more stable, not stable...

Kobo has cleaned up the revenue leakage from things like multi-tabbing. Kobo doesn't lose money from the contests malfunctioning or the promo codes not working. Well, not as much as from multi-tabbing, probably.

[John F]

Originally Posted by murg

I said more stable, not stable...

Kobo has cleaned up the revenue leakage from things like multi-tabbing. Kobo doesn't lose money from the contests malfunctioning or the promo codes not working. Well, not as much as from multi-tabbing, probably.

Losing frustrated customers and excessive customer support does have some cost; I'm guessing more than multi-tabbing.

[Katsunami]

Originally Posted by Fbone

It's the way the industry is heading. More and more companies are moving operations to save costs.

Yes, and by doing so, they also move their standards of production, which is mostly downward. In another 25 years or so, the entire Western world will have forgotten how to make things; except for Germany of course. Even if everything in this world goes to pieces, there will always be Germany, making things that outlast the destruction of the known universe.

[Apache]

Originally Posted by Katsunami

Yes, and by doing so, they also move their standards of production, which is mostly downward. In another 25 years or so, the entire Western world will have forgotten how to make things; except for Germany of course. Even if everything in this world goes to pieces, there will always be Germany, making things that outlast the destruction of the known universe.

I can attest to that. My Laser Welder was made in Germany by Rofin. It is absolutely the best manufactured piece of equipment I have ever seen. I have owned mine for 15 years and have not had any problems with it.

Apache

[Katsunami]

It's true. Most of the possessions I have that I really value, are either made in Germany, Japan, or a western/northern European country. In those products, I have the confidence that they'd probably outlast me if treated well; most others, not so much.

If something is moved to China or India, I associate this with plummeting quality standards. Not because those countries can't make good stuff (my British designed Hawke Rifle Scope is produced in China, and it's a quality piece of kit), but because most companies moving production there only have one goal in mind: cost reduction at all costs. The savings have to come from somewhere, and it's mostly assembly tolerances and quality control. (Or, in the case of software, sloppily written and badly tested code.) If the products would be of good quality, I'm quite sure that the people building them would demand salaries to match, and that would make the cost cutting much less pronounced. Then, there would be no need to move production.

One Chinese company I can greatly appreciate is Fiio: they create high-end FLAC music players, and they do it in such a way that they could rival any German/European company in quality, and they have support to match. But then, they also have asking prices as high as products made in Germany/Europe.

[Apache]

People want quality, but they do not want to pay what it is worth.
I see so many pieces of jewelry that have been poorly sized or repaired simply because the owner doesn't want to pay what a quality repair would cost. Then they come in and have to pay me to make it right. So how much money are they really saving? You may pay more for quality, but quality lasts much longer. Sure a platinum ring cost a lot more than the same ring in white gold. But a platinum ring will last longer than your lifetime. A white gold ring will last no more than 20 to 30 years under normal conditions. Also, there is no such animal as white gold. Gold Is Yellow. The manufacturers add white alloys to make the ring white. it will still have a yellowish hue so the manufacturer will rhodium plate the ring to make it look bright white. Rhodium is a platinum metal and will wear off in 6 months under normal conditions.
Apache

[Katsunami]

I will always buy the best I can afford. If all products I can afford fall below my quality standards, I will either save more, or buy nothing if the cheapest of the good products is more expensive than it is worth to me to have it.

If everybody would do that, producing both crappy stuff and overpriced stuff would not be profitable.

[Apache]

Then there are those who equate quality with price. A competitor and I had the exact same ring from the same vendor. I was selling it for less than my competitor and a woman came into my store and saw that I had the ring for less money. She asked me what was wrong with my ring.
Apache