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Friday, July 02, 2004

Cold As Ice 


(via WaPo business section)
A report by an influential consulting firm is exhorting U.S. companies to speed up "offshoring" operations to China and India, including high-powered functions such as research and development.

In blunt terms, the report by the Boston Consulting Group warns American firms that they risk extinction if they hesitate in shifting facilities to countries with low costs. That is partly because the potential savings are so vast, but the report also cites a view among U.S. executives that the quality of American workers is deteriorating.

"The largest competitive advantage will lie with those companies that move soonest," the report states.

Boston Consulting, which counts among its clients many of the biggest corporations in the United States, admonishes them that they have been too reluctant rather than too eager to outsource production to "LCC's," or low-cost countries.

The report, released in May, has gone almost unnoticed amid generally upbeat news as strong economic growth has begun fueling an increase in jobs, diminishing public debate about offshoring.

Particularly troubling is the report's information about confidential discussions with executives at Boston Consulting's client companies, many of whom conveyed low opinions of their American employees compared with labor available abroad.

The report advises that some products should not be moved overseas, such as those where there is a high risk of stealing patents and copyrights.
OH-kay, who's been getting uppity again? Mr. Legree, the whip please.




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