Posted by In-Cog-Nito on January 22nd, 2004 (All posts by In-Cog-Nito)
I read a good article recently about Walmart and their part in the shift to offshoring US jobs.
The article is skewed since the author seems to take the side of companies that went bust because of Walmart. And current Walmart vendors don’t want to talk about it understandably. The article has some good insights nonetheless.
There was another good one about Wipro and offshoring white collar jobs.
One underlying concern I have with wholesale shift of manufacturing offshore is that R&D usually follows manufacturing. You start with manufacturing, move to refining designs, and ultimately to complete R&D. Look at Japan and VCR’s. The national security implications have been debated endlessly so I won’t go into it unless someone wants to.
Net net, there’s really no easy answer to the question since price is such a key determinant in the equation.