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Re Dave Hansell's question, much of the professional category is made up of IT, HR and marketing folk. Job title inflation also plays a part in both this category and that of management. Outsourcing initially boosts productivity through reduced function costs, but this entails increased supplier/contract management. Further productivity gains tend to diminish relative to the management overhead. The Coasian extreme is a business that is 100% managers and where productivity gains regress to the mean.
Toggle Commented Aug 19, 2016 on On job polarization at Stumbling and Mumbling
@gastro, because in the mid-80s a PC cost £5k while a mini cost 20 times that and a mainframe 100 times. It's about relative value, not absolute. From a corporate perspective, what matters is the depreciation schedule, not the ticket price. IT has moved from long-term fixed assets to commodities and services. The falling price of investment goods is a key feature of secular stagnation, particularly in respect of the compositional shift from hardware to software.
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Jun 24, 2013