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Tuesday, January 03, 2006
Offshoring : Sustainable Advantage & Favorable Drivers
Very recently when covering the Mckinsey -Nasscom study on looming Indian IT labour shortage, I wrote that The problem is not non - fixable & that with concerted efforts from Government, educational instituitions & corporates & suggested that on reading the specific recommendations( thought they look generic - the roots of the solutions anyway lay there) to overcome the shortfall and once can easily relate how this fully doable. While several people are talking about the rising wages and potential petering of interest in outsourcing from Asian contries a key finding from Everest group suggest otherwise. Very recently we covered the view from Everest Group about the impending restructuring of the outsourcing market, where Peter Bendel Samuel of Everest explained how the outsourcing is poised for a huge change and noted that offshoring is here to stay and what could be offshored would get offshored certainly. In what can be seen as a related finding – Everest Research Institute's Offshore Market Report looks at the competitive sustainability of labor arbitrage in various offshore locations.Sustaining of offshoring is even stronger than the viewpoint on sustainability of labor arbitrage. This is because labor arbitrage itself is not a concern, and also there is enough else going on for offshoring. Amongst the key finding of the report includes with all other things being equal and based on current known facts about the drivers, it is very clear that for the next thirty years, labor arbitrage will sustain in most offshore locations.
Category :Offshoring, Emerging Trends |
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