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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?


To: RealMuLan who wrote (5975)6/19/2006 12:21:54 AM
From: 8bits  Respond to of 6370
 
"He said large multinational corporations such as IBM, General Motors, Ford and others need to stop treating foreign countries as colonies, basically keeping the good stuff at home and offshoring the junk to the remote outposts where labor is cheap."

Although it sounds nice it is a page out of the Karl Rove newspeak. (Sam Palmisano is an acquaintance of George Bush) Mr. Palmisano is trying to keep the US IBM workers quiet since there has been a net loss of US jobs at IBM since he has taken over. In reality much of core development is still in the US.

The funny thing about his comment about the American Automobile companies is they were some of first US companies to delegate design and engineering overseas. (To appeal to local market tastes, etc..) The IT industry was late to the party. Not until Indian and to a lesser extent Chinese engineers were hired en mass for "Y2K" (Coincident with the drop in pricing for phones calls and internet access...) did it become apparent there a very large, viable, and inexpensive labor pool of engineers in China and India.

On a personal note I can say the Beijing engineers I have worked with as part of the outsourcing strategy have been materially better than the people I have worked with in India. Not that Indian engineers are bad (I have worked with some very brilliant people) but I suspect it has to do with management style there or the best and the brightest (from India) come to the US.