Chasing Cheap Labor in IT
siliconindia.com: “Quoting a new report from market research firm Gartner, Inc. CNN says that a labor crunch and rising wages could erode as much as 45 percent of India’s market share by 2007. “
Yes, an article about IT, but it reminds me of the position Mexico was in. For a while, of course, Mexico was the “cheap” place to do manufacturing… problem is, someone cheaper always comes along. There have been earlier articles on this blog discussing how China is potentially no longer the “cheap” place and countries like Vietnam and Bangledesh come along. I think the lesson is to focus on more than just your labor cost and you can avoid having to jump from country to country.