Digg links to an eWeek article that reports the outsourcing boom is over, according to a study. "A study," doesn't account for the leveling of the economic conditions in these countries, and the reality that a lot of their workforce is being acquired by local companies building retail products for the global economy. The "outsourcing" is about as over as the internet (see similar comments at the bursting of the tech bubble).

Until Chinese and Indian employees make as much money as Americans, companies with labor pools in both these countries will have a capital advantage over companies that rely on American labor pools. Ah! What we have learned, however, is that managing labor in forgeign countries, when you aren't equipped to deal first hand with the employees, is a bad idea. SHOCK! And, maybe spending more money than a website could ever hope to make selling a widget may be a bad investment? This isn't news. People learn, the markets' real needs never change. These are unrelated issues. It's interesting, but only in the fact that some people used to do outsourcing stupid, and now they are doing less of that.

Posted in business | economy | tech jasonn's blog