why is it BAD to go offshore? every other companies are doing that.
Once everything is outsourced, AIG will have no intellectual capital left. What that means is that you have outsourced your competitive advantage and then its all down hill from there. Once all the claim processing system was completely outsourced to IBM, where is the opportunity to reduce that cost? IBM's processing cost will continue to go up and AIG will never be able to bring it back in-house because there is no one at AIG that can build/integrate/manage it. All gone, all outsourced.
Simple question, is AIG in growth or decline mode?