kjkhoo at softhome.net wrote:
> Take, for instance, assembly-line work in Intel. As far as I can tell,
> levels of productivity in production of CPU's, e.g., are not any lower
> in Penang, Malaysia, than in the US. But even if they were 50% lower,
> wages are definitely more than 50% below that of the US. And Penang,
> Malaysia, would be one of the higher wage areas outside the US.
But there's more to it than that: there's the bribes you have to pay, there are the transportation costs, the added management and middleman costs, the lost-in-translation costs. I'm not saying it's not cheaper to outsource, but the win isn't automatic and it's not guaranteed.
Joanna