HenryTo
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Joined: 06 Aug 2004
Posts: 11740
Location: Los Angeles, California
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 Posted: Wed Jun 08, 2005 8:29 pm Post subject: Outsourcing Industry at a Crossroads |
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Looks like the current trend of outsourcing is waning - at least in the short-run. Like I have said times before, outsourcing is definitely overstated in the short-run but probably understated in the long-run.
Original link: http://www.diamondcluster.com/Press/PressRelease.asp?src=pressreleases331.asp
Despite all this, China is now emerging as the one of the most attractive places to outsource services. Quote:
China Rapidly Emerging as Next Offshoring Hot Spot
In 2004, only six percent of survey respondents said they planned to establish offshore operations in China. Today, that number has soared to 40 percent.
“China is starting to look like India did 10 years ago,” Weakland said. “As outsourcing capability in China takes off, it will put deflationary pressure on the traditional providers of commoditized outsourcing services and set an entirely new price point. The most aggressive providers are establishing operations in China now to grab market share. Taking a wait-and-see approach is not an option. Countries that appear to have fallen out of favor, according to the data, are Israel and Russia. |
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