Outsourcing Thread

From what I’ve read, one of the results of outsourcing is that the demand created tends to drive up labor costs in the outsourcing country. In the case of Mexico, it is now very nearly as expensive to set up a manufacturing plant in a border town as it is along the Texas border.

Some companies end up moving operations back to the home country after hoped for cost savings do not materialize, or they encounter too many problems in the outsourcing country.

Sure, there is always some pushback. I’ve heard of software projects going either way – Boeing is having good results because its Indian operations are isolated from the micromanaging nitwits in Seattle, but on the other hand an agency manager mentioned some small companies who got garbage back from their cost-cutting offshore development work. (You see the same even within the U.S. – [company name deleted at the insistence of my lawyers], in my experience, royally screwed its clients.) For call centers, Dell was forced to give its top business customers American service – but that just meant more home customers got diverted to Dell’s Indian call centers.

The L.A. Times has an article today about Travelocity pulling a call center out of Virginia in favor of India:
news.yahoo.com/news?tmpl=story&c … &printer=1

[quote]CLINTWOOD, Va.

that guy tried to outsource multiple jobs of his, but it apparently did not work out well