Chasing Cheap Labor in IT “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.

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Mark Graban's passion is creating a better, safer, more cost effective healthcare system for patients and better workplaces for all. Mark is a consultant, author, and speaker in the "Lean healthcare" methodology. He is author of the Shingo Award-winning books Lean Hospitals and Healthcare Kaizen, as well as The Executive Guide to Healthcare Kaizen. His most recent project is an book titled Practicing Lean that benefits the Louise H. Batz Patient Safety Foundation, where Mark is a board member. Mark is also the VP of Improvement & Innovation Services for the technology company KaiNexus.

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