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They diagnosed high personnel and unit costs in producing what were (by now) standard form customer agreements. Answer: to [[Downgrading - waste article|replace]] the personnel operating the process and negotiating the agreements with cheaper personnel, in [[low-cost jurisdiction]]s. | They diagnosed high personnel and unit costs in producing what were (by now) standard form customer agreements. Answer: to [[Downgrading - waste article|replace]] the personnel operating the process and negotiating the agreements with cheaper personnel, in [[low-cost jurisdiction]]s. | ||
[[Low-cost jurisdiction]] implies that, [[all other things being equal]], the quality of the personnel stays the same: just the unit cost that is cheaper. No-one commissioned any serious research on that topic before reaching that conclusion — it was taken as read — and it just isn’t true.<ref>While it is true that neither have I, I can at least point to anecdotal evidence and the basic rules of supply and demand.</ref> | [[Low-cost jurisdiction]] implies that, [[all other things being equal]], the quality of the personnel stays the same: just the unit cost that is cheaper. No-one commissioned any serious research on that topic before reaching that conclusion — it was taken as read — and it just isn’t true.<ref>While it is true that neither have I, I can at least point to anecdotal evidence and the basic rules of supply and demand.</ref> | ||
There is an old truism, however: you get what you pay for. Arbitrage opportunities do not last long in any buoyant market, as any banker will tell you. | There is an old truism, however: you get what you pay for. ''If you pay peanuts you get monkeys''. Arbitrage opportunities do not last long in any buoyant market, as any banker will tell you. | ||
Instead, [[low-cost jurisdiction]]s offered an unlimited supply of young, well-educated and ambitious graduates with boundless energy, a yen to get the hell out of their hometown<ref>And its — well — low incomes, you know?</ref> and seek their fortunes somewhere else — ''anywhere else'' and in any case, no [[subject matter expert]]ise whatsoever. These kids work hard, but ''you only know what you know''. | |||
This might not matter if the subject matter did not need specialist expertise. But, as it is, it ''does''. The {{isdama}} is a tortured piece of legal technology, and that’s before the institutions have injected their idiosyncratic, paranoid and often senseless credit standards. Now, it’s an open point whether an {{isdama}} ''should'' still be so complicated<ref>In your humble correspondent’s view, the standards required by most institutions of their master trading agreements are absurd — this whole wiki is a testament to that.</ref> but the fact remains that it ''is''. And no [[management consultant]] has ever thought of simplifying the legal and credit content of the agreement before offshoring it to give the poor kids a chance. |