Globalization – Where clients get the most value!
I read two articles recently in two different publications that refined the concept of globalization.
The Rise of Central Europe – Deep reserves of educated, ambitious, and affordable workers are driving the region (Business Week – December 12, 2005).
The rise of nearshoring – Ex-communist Europe is grabbing a lucrative niche in the global outsourcing business (The Economist – December 3rd-9th 2005).
First some data (Business Week):
China / India U.S. corporation in a fabrication facility in Brazil U.S. facility, subsequently were moved to Scotland , then to Brazil India
How do you compete?? Proximity … leverage the fact that your are;
China , India and Turkey
TC
The Rise of Central Europe – Deep reserves of educated, ambitious, and affordable workers are driving the region (Business Week – December 12, 2005).
The rise of nearshoring – Ex-communist Europe is grabbing a lucrative niche in the global outsourcing business (The Economist – December 3rd-9th 2005).
First some data (Business Week):
Country | Factory Worker | Engineer | Accountant | Middle Manager |
$3.07 | $4.32 | $4.03 | $6.69 | |
2.81 | 5.38 | 4.10 | 6.81 | |
0.73 | 1.43 | 0.83 | 2.80 | |
0.80 | 3.50 | 3.20 | 4.42 | |
0.43 | 2.40 | 1.93 | 3.13 | |
18.80 | 38.90 | 26.40 | 40.40 |
How do you compete?? Proximity … leverage the fact that your are;
- Physically close,
- Perhaps a member of or soon to be member of the European Union,
- Have employees that are fluent in German, French, Italian, Spanish, etc.
In fact these countries are starting to see investments not only from western companies, but from companies based in
- Stifling bureaucracy, corruption, etc.
- Lack of investment in infrastructure, higher education, etc.
- Complacency (don’t worry we will get it right eventually!)
- Shallow talent pool (e.g. middle managers with customer/ quality focus, …)
TC