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Acxiom Sold

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Acxiom will stay in LR but will cut their workforce then start adding again, just as they always do. Morgan thus far is saying no changes that will affect employees. Obviously the long-term risk is that the owners will start selling off pieces of it and/or eventually all of it.

I still think nothing changes at Alltel. I think the price is too steep.

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Actually, that sounds REALLY good.

The perpetual issue has always been availability of good job candidates for Acxiom but I don't think that's as much of a problem as it used to be. It was a real issue when the company was entirely in Conway.

The issue a few Acxiom employees I know have brought up is that labor is already cheaper in India and Acxiom has been outsourcing to India more and more frequently. We'll have to watch that.

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Not all projects work well with outsourcing. I know Acxiom has had some bad results with outsourcing to India and China. There are projects that have had to be reworked in the US. Doing projects twice always costs more.

They've also done projects with workers around the world, so that someone is working on the project round the clock. It is an interesting concept. It has its share of pitfalls to be avoided. But, it can be effective to meet very short deadlines.

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