American and European companies finally have realized the bad side of outsourcing moving out of India and China and coming closer to customer bases : IBM study
Harish Baliga
Sep. 17, 2006

The great depression of India and China starts with European and American companies puuling out in big numbers trying to be close to their markets, suppliers and decision-makers rather than just looking for a low-cost base.

A recent survey by IBM’s consulting arm will show on Monday that American and European companies are eager to get out of India and China. They are planning to pull out to make sure they can be closer to their markets, suppliers and decision-makers rather than just looking for a low-cost base.

The days of cheap labor India and China are gone. Indid and China now face the daunting challenge to match the skill levels of America and Europe. The salary and prices in india and China have steadily gone up and it does not make any sense for multinationals to migrate into these developing nations. The productivity within America and Western Europe is so high, it make little sense to expand in China and India.

Indian and Chinese economies without the continuing inflow of the Foerign Direct Investment (FDIs) will collapse in a short time. The grea depression of Asia has started silently in China and India.

American and European companies finally have realized the bad side of outsourcing moving out of India and China and coming closer to customer bases : IBM study
Harish Baliga
The great depression of India and China starts with European and American companies puuling out in big numbers trying to be close to their markets, suppliers and decision-makers rather than just looking for a low-cost base.
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