Thursday, March 31, 2005
Here's a good article on the next wave of "offshoring". In a global economy, there is no place to hide. Read more.
My own view is that this article falls into the trap of over-estimating the short-term impact, while not exploring the profound long term implications.
I started out in economic development after serving as a corporate consultant in the early 1980's...during the first wave of outsourcing. Companies have a tendency of focusing only on cost factors when they outsource. Comparing labor costs is easy. They do not have the accounting systems established that enable them to capture the full systems costs.
So for example, on paper you can see how software engineers in India beat software engineers in New York every time. But outsourcing also carries hidden costs and increased risks that accounting systems rarely reveal.
posted by Ed Morrison |
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Some Background on EDPro Weblog
The purpose of this weblog is to help economic development professionals -- EDPros -- keep up with the changes sweeping our profession. Strap on your goggles. It's a whole new game. There are no experts any more. The only place to learn about economic development is from other EDPros who are doing it.
One other point: the prevaling approach (paradigm, if you like) in economic development is shifting from competition to collaboration. There are a lot of reaasons underlying this shift, but here's the important insight: You, your community, and your region will do better by collaborating and sharing information.
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Speaking and workshops on Open Source Economic Development
As the idea of Open Source Economic Development starts spreading, more people are asking about it. Visit the I-Open web site to learn more. My colleagues and I are happy to explain the basic concepts in a talk or a workshop. E-mail Susan Alshuler if you'd like to learn more about workshops and speaking.
Background on Ed Morrison
Download some background information on me here.
The relentless offshore challenge
