[biztech-discussion] CFO.com article

  • From: "Samantha Clark" <sclark.abq@xxxxxxxxxxxxx>
  • To: <biztech-discussion@xxxxxxxxxxxxx>
  • Date: Wed, 17 Mar 2004 14:20:51 -0700

Most of the article linked below is info we've already seen. But the quote
does raise some serious concerns about offshoring. Once we've trained
overseas workers in ever more sophiticated skills, and transfered sensitive
technology to sub-contractors, who's to say they will continue working for
American companies? Americans are assuming that foreign companies lack the
sophistication to turn the tables. While it's possible for partnerships to
give us access to foreign markets, particularly closed markets like Asia
that prefer dealing with their own companies, we can't assume the
partnerships will last.

It's possible we're training the companies that will eventually dominate
international markets, while American companies will be reduced to
meaningless, expensive upper executives.


Offshoring, however, is a dynamic rather than static opportunity. Just as US
companies would be narrow-minded to think that Asian companies can handle
only low-skilled business activities, so too they would be foolish to
believe that these same companies will never develop the marketing expertise
needed for success in developed markets. Some Western companies might feel
sufficiently threatened by that possibility and avoid working with
original-design manufacturers altogether. Others, though, will be more
confident of their ability to maintain a competitive advantage in developed
markets even if they move key design and technology elements to Asia.

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