Monday, February 28, 2005

Outsourcing and globalization

As I'm a software engineer, outsourcing of software projects to India and China is a hot issue to me. I like cheap goods too though, so I'm stuck between a rock and a hard place. Our capitalistic system should work this out in time, though--hopefully sooner than later. Eventually, outsourcing software development to India and China is not going to be profitable when their currencies start increasing in value. If the developers are not longer working for dirt cheap, then why take the expense of outsourcing? Check out this article.

I also think that the current state of world affairs is going to make some corporations rethink their globalization strategy. There is quite a bit of risk in globalization. China could seize the assets there and nationalize the business. On the other hand, China is such a huge potential market that to ignore it could cripple a business as well. Perhaps the wealth of the capitalistic system will push China into a democratic government--greed vs. power will be an interesting struggle. I would just like to comment that history shows very few bloodless, radical changes of government. People don’t give up absolute power easily…


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