When a firm wants to save money on operations, they have only to find another company willing to do a given task at a discount.
Why pay someone wages and benefits if another company can pay someone else lower wages and fewer benefits, and still get the same job done?
People in India are willing to work for less, and they aren't whingeing about health care or time and a half or Saturdays off.
Barry O'Callaghan's whale of a corporation has thrown 65 employees out of the pond, high and dry, in an effort to realize a few more little synergies.
In the future, HMH's IT needs will be met by people in India, courtesy of Cognizant Technology Solutions. East Asians will find work and the former HMH employees in Boston or Orlando will be considering a move to Mumbai or Delhi.
To further reduce costs, HMH could outsource the writing of novels and non-fiction manuscripts for the adult trade division, thereby eliminating author advances. East Asian editors, working in Calcutta, could easily manage acquisitions on the cheap. Books would sell at the same price, while profits would climb.
Swimming in debt, HMH Riverdeep will have to get even more creative, to realize even more synergies, if it's to stay afloat.