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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: Condor who wrote (9659)3/7/2004 8:30:39 PM
From: rubed   of 110194
 
I was chatting with my friend who is working in outsourcing here in Beijing for one of the big global strategic consulting firms. He gave me a couple of interesting outsourcing examples.

1. He just started a project for a Boston-based tech hardware company has all their production in the U.S. They plan to move all their design to Taiwan ... there go all the good paying jobs ... and all the production to China of course. He says that everyone knows that Taiwan is just short-term and soon those jobs will be in China as well. I was surprised that Taiwanese design costs would be that much lower than the U.S. but he assures me they are.

2. Despite the language barrier for outsourcing call centre jobs to China, don't forget about outsourcing within the NE Asia region. GE just built a 1000 person call centre for Japan/Korea/China in China.

3. Savings on outsourcing are estimated at 20-30% on average for manufactured products. This includes the cost of larger investories and a longer product cyle.

rube
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