Linked by Thom Holwerda on Fri 22nd Mar 2013 09:56 UTC
In the News If you don't live in the US, this is a pretty common source of irritation: US companies charging crazy markups on products sold in Europe, Asia, Australia, South America, and the rest of the world. The Australian government has had enough of this practice, and started an inquiry into the matter. Yesterday (or today? Timezones confuse me) Apple, Microsoft, and Adobe had to answer questions in a public hearing.
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RE[2]: Comment by static666
by static666 on Sun 24th Mar 2013 12:20 UTC in reply to "RE: Comment by static666"
static666
Member since:
2006-06-09

...a kickback is in common definition underhanded and unethical, almost a a bribe) - how is that a "WIN" for a developing economy?

Ultimately it's a loss for a business and society as a whole, of course. However, IT is a very lucrative target for corruption, and it's a "WIN" for the parties directly involved.

Due to many developing countries still undergoing IT revolution, we see ever increasing reliance of business processes on IT technologies, faster growing budgets and spending, together with overall complexity of most IT solutions and sometimes total lack of expertise among the top management and business owners - it often comes down to certain individuals influencing the buying decision in a major way.

Now even those tech-oriented individuals often lack education or experience for proper understanding of proposed solutions, and many care about immediate personal gains. After all job markets in developing countries are very volatile, and it's rare for people to be treated as valuable asset rather than just a workforce.

This eventually leads to kickbacks being the only real way to seal the deal and guarantee a favorable outcome for the seller. No way you're going to spend time and money designing a better solution, tailoring it specifically to customer's needs, when your competitor just comes over and simply buys your decision guy out.

I can only speak for EMEA, but working for a company selling integrated solutions from various IT vendors for many years, I've seen them all involved, up to deals going through on regional level with high profile managers being aware and providing support.

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