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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 385.42-0.3%Dec 8 4:00 PM EST
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To: Haim R. Branisteanu who wrote (94419)9/11/2012 6:16:23 AM
From: elmatador  Read Replies (1) of 218265
 
But as other countries gain experience while Polish salaries continue to rise, that advantage will be eroded.

This is rebalancing at work.

“We’re looking at Romania all the time, although we haven’t yet decided to shift there,” says one executive attending the convention.

But rebalancing is not localized. It is worldwide and is never done.

In the short term the (EZ) slowdown benefits Poland as western European companies look to slash costs and so shift some back office operations to the east of the continent. But if the crisis grows in severity, those firms will see their business start to shrivel, reducing the workload for their CEE back offices.

Finally, the Hackett Group warns that the offshoring boom may have only a short time left to run. The consultancy estimates that US and European corporations will move 750,000 jobs to cheaper locations in emerging markets, but adds:

… levels of additional offshoring in these areas will begin to decline by 2014, and in the next 8-10 years the flow of jobs offshore is likely to cease, as companies simply run out of business services jobs suitable for moving to low-cost countries. … of the 5.1 million business services jobs remaining onshore at U.S. and European companies in 2012, only about 1.8 million have the potential to be moved offshore.

If that is true then Buzek’s warning for the industry to move quickly and grow as large as possible before it runs out of steam is very apt.
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