Tuesday, July 24, 2007
Offshore Outsourcing Beginning to Balance Out with Increasing Wages
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See also outsourcing updates for related categories: India, China, Ireland
Offshore Labor Outsourcing Beginning to Balance Out with Increasing Wages
Excerpts from a news item at Appleton Post Crescent
The latest outsourcing story is about the supply and cost of labor — and the shift of these areas from having cheap labor to not have such cheap labor because of a strong demand for workers and because of workers' ability to move to other job markets easily in the global economy.
For instance, workers in Slovakia are migrating to Ireland because of higher productivity and better working and tax conditions, and that's forcing employers in Slovakia to push up wages to attract skilled workers to companies like Kia Motors Corp., which had opened up plants there mainly because of the cheap labor.
The India story is something similar. Companies who moved software engineering jobs to Bangalore, India, a couple of years ago because of low wages are suddenly seeing the labor cost difference narrowing because of dramatic increases in salaries for Indian software engineers. As a result, many U.S. high-tech firms are starting to reverse the job outflow.
It appears that the New York Times columnist Tom Friedman, author of "The World Is Flat," was indeed correct in its prediction that countries will race to the top in productivity and wages, and not to the bottom. The cases of Slovakia and India are just a tiny sampling of that process working.
Mexico represents the exact opposite of Ireland - it appears to be a country obsessed with leftist principles, and the unsettled political climate is contributing mightily to Mexican entrepreneurs losing out to Chinese businesses in the competition to sell to the U.S.
Read the full news report from here @ Appleton Post Crescent
Click on the labels below for more posts on those categories
See also outsourcing updates for related categories: India, China, Ireland
Offshore Labor Outsourcing Beginning to Balance Out with Increasing Wages
Excerpts from a news item at Appleton Post Crescent
The latest outsourcing story is about the supply and cost of labor — and the shift of these areas from having cheap labor to not have such cheap labor because of a strong demand for workers and because of workers' ability to move to other job markets easily in the global economy.
For instance, workers in Slovakia are migrating to Ireland because of higher productivity and better working and tax conditions, and that's forcing employers in Slovakia to push up wages to attract skilled workers to companies like Kia Motors Corp., which had opened up plants there mainly because of the cheap labor.
The India story is something similar. Companies who moved software engineering jobs to Bangalore, India, a couple of years ago because of low wages are suddenly seeing the labor cost difference narrowing because of dramatic increases in salaries for Indian software engineers. As a result, many U.S. high-tech firms are starting to reverse the job outflow.
It appears that the New York Times columnist Tom Friedman, author of "The World Is Flat," was indeed correct in its prediction that countries will race to the top in productivity and wages, and not to the bottom. The cases of Slovakia and India are just a tiny sampling of that process working.
Mexico represents the exact opposite of Ireland - it appears to be a country obsessed with leftist principles, and the unsettled political climate is contributing mightily to Mexican entrepreneurs losing out to Chinese businesses in the competition to sell to the U.S.
Read the full news report from here @ Appleton Post Crescent
Click on the labels below for more posts on those categories
Labels: china, competitive-advantage, india, ireland, it-trends, mexico, trends
PermaLink - Offshore Outsourcing Beginning to Balance Out with Increasing Wages posted by Ecacofonix : 9:06 AM
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