Wednesday, July 23, 2014

What's the Key Driver Leading to Overseas Outsourcing?

According to a 2012 survey from Duke’s Fuqua School of business, nearly three-quarters of respondents indicated labor cost savings as one of the three most important drivers leading to overseas outsourcing.
This was twice the rate of response for any other option. But according to research from the Hackett Group, the cost gap between the United States and China has shrunk by nearly 50 percent over the past eight years, and is expected to stand at just 16 percent by 2013. Labor costs in China and elsewhere are rising, and coupled with rising fuel prices raising shipping costs, the economic argument for sending jobs overseas may be becoming less persuasive.
Oh really.  Currently, a lot of politicians are still using the "sending jobs overseas" as a hot button issue to pin against a favorite candidate. Take the case of Republican Gov. Scott Walker (WI), who is running a campaign ad hitting Democratic candidate Mary Burke (WI) for her family’s company where she used to work, Trek Bicycle, for sending jobs overseas.

Read more:  Walker ad used Trek sending jobs overseas to rip Burke

A little more on global leader Trek bikes.

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