Futurist Dr Patrick Dixon, author of 12 book including Futurewise,
recently made this keynote speach at a conference in Sweden. He asserts
that massive wage jumps in India and China of up to 100% a year mean
that cost advantages of outsourcing offshoring to these countries are
rapidly disappearing. What next? Will jobs move back to America or
Europe? Will huge salary inflation impact for senior executives in
India and China make outsourcing economics harder. He is seeing up to
100% wage inflation in China and 40% in india for experienced business
leaders.
See Dr Dixon's video:
If we include the uncertainties of exchange rates, the risks of offshoring appear to be increasing. Does that mean that companies will start looking seriously as homeshoring (where savings of 20% - 40% are achievable), or will they seek to go down the cost curve by seeking out lower cost offshore destinations?
For an overview of Ki Work's homeshoring solutions
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