some firms use this tactic to focus on the work only they can offer.
by rob nixon
manufacturing companies have been using low-cost labor in developing countries for decades to produce their products. just look at the clothes on your back. i bet very few of them are made in the u.s.a.!
more on strategy: the profession disrupted: compliance commoditized
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the reality is that because of escalating labor costs, most western countries have priced themselves out of markets by attempting to produce the product locally.
up until a few years ago, it was primarily “hardware”-based manufacturing companies using this resource. now we are seeing “services” companies embrace the outsourcing trend with fully resourced teams.