Morrow's Blog: Now that the world has embraced outsourcing to India, it has, in effect, killed the golden goose. Because everyone is now pursuing outsourcing, real wages are going up and will soon near US rates, and turnover is going up as a highly competitive market competes for the best workers...


I think Marty is spot on in his comments here. Over time, the net effect of outsourcing will result in a general levelling of wages and costs to perform similar work on a global scale, to some extent by retarding wage growth in developed nations, but primarily increasing wages in developing countries. This is evidently occurring in India right now - however, I expect the process to take longer than Marty seems to be suggesting. The next logical step if for work currently being outsourced to India to be outsourced to some other country.


Marty's a smart guy, and his company offers an attractive alternative to the "chasing shadows" nature of trying to cut costs via outsourcing. I think he's on to something that makes a lot more sense than just trying to bundle up your work and ship it somewhere else.






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