Nortel’s move to lower costs by opening facilities in lower-cost geographies took another step forward with the opening of a a new “Centre of Excellence” in Istanbul, Turkey. The facility, which was part of an announcement that year that also included a move into Mexico, will provide support for customers around the world, network technical support for North American customers, and network integration and technical support for customers in Europe, the Middle East and Africa.
Nortel CEO Mike Zafirovski said the facility is “an important milestone in the Nortel story. This center is vital to improving customer support as we enter a new era of communications driven by the convergence of three powerful megatrends we believe are significantly changing the industry – hyperconnectivity, communications-enabled applications and true broadband.”
Translation: If Nortel wants to lower operating costs, increase gross margins and boost profits, the company needs to leverage lower-cost places such as Turkey, Mexico and China. As Canada’s flagship high-tech stories, a big question is how many more jobs will be moved out of Canada and the U.S., especially high-paying R&D positions.