ShareProphets readers come from a wide range of backgrounds and have a wide range of expertise and so serve up some amazing comments which merit a wider audience. Today we have Kelvin on Outsourcery (OUT) – a superb comment from someone in the industry. He writes:
The problem for Outsourcery, and any technology company entering into the cloud service provision market, is that there is already massive overcapacity.
That’s the fundamental flaw in the business model for Outsourcery, and the reason why it’s unlikely to ever earn a reasonable return on capital.
Just take one part of its business with which I’m personally familiar
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