Outsourcing and offshoring have become standard recipes for MBA’s. The common “wisdom” taught in management schools is that all production will follow cheap labor to China and India and further. But, as one of our favorite blogs Evolving Excellence time and again demonstrates, in many cases this recipe is wrong and misguided. Improving your processes by respect for people and reducing all kinds of waste (including dead capital, production to stock and lead-time) is the superior answer.
And will cheap labor stay cheap over time? Apparently not.
A good example was given to me by a consultant who conducts many lenghty interviews on video and tape. He used to let these transcribe in India but changed recently to a supplier in…….
the United Stated of America, in the MidWest. 25 % lower cost, much higher quality because they understand more of the context.
