Offshoring

In the article, “Time to rethink offshoring?” the author presents interesting points about the changing landscape of the production of high-tech goods in Asia. One of which was a conversation about the rises costs of labor and manufacturing. Developed nations are no longer enjoying the benefits of low labor costs in developing countries. From a business perspective, the need to improve supply chain management practices is apparent. However, from a policy perspective, the solutions aren’t as apparent. 

While I read this article, I couldn’t help but think of the outsourcing policies of the Bush, Jr. Era. To be clear, “Outsourcing occurs when a company contracts a specific process out to a third party, finding someone who specializes in whatever needs to be done.  Offshoring happens when businesses send in-house jobs overseas.  Both may save a company money, but only offshoring specifically means sending jobs out of the country.”[1]

I found an interesting article about the upcoming campaign and how candidates from the left and right are using outsourcing as a target against each candidate: http://www.nytimes.com/2012/08/08/business/economy/in-outsourcing-attacks-tired-rhetoric-and-no-political-leadership-economic-scene.html?_r=0

My questions for this particular topic of rising costs of offshoring:

·         What happens when the developing countries demand for rising labor costs are too much for 3^rd party suppliers to be sustainable and affordable?

·         Can there be policy to support job creation for American job manufacturing? How about a sustainable option that will support high-tech goods at an affordable price?

·         Is it possible to support a new standard where the supply chain manufacturing process can be made in a developed nation?

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[1] http://abcnews.go.com/blogs/politics/2012/06/outsourcing-and-offshoring-is-there-really-a-difference/