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Wednesday, June 16, 2004Go offshore, industrial company.That,in a nutshell, is the conclusion of a report released Tuesday by The Boston Consulting Group, the latest organization to weigh in on the controversial topic of shipping work abroad."Despite the challenges, the real question now is not whether to go global but how much and how fast you can move," the report said. "The largest competitive advantage will lie with those companies that move soonest and make the strongest commitments."The report also argues that lower costs and other advantages in countries such as India won't tail off for at least the next two decades--and may widen. Even if labor rates jump more quickly in low-cost countries, it argued, the gap in real wages could increase because of the countries' very low base wages. For example, a 100 percent increase in a factory worker's $1-an-hour wage still only raises the company's costs by $1 per hour, while a 10 percent hike for a $30-an-hour factory worker in the West costs a company $3 per hour.
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