H.P. continues to deal with the labor arbitrage issues.
Mr. Roach offers an explanation of this trend: global labor arbitrage.
This may well be true, but there is a more compelling explanation: global labor arbitrage.
If patriotism is important, native Americans have formed outsourcing companies to provide the same labor arbitrage on our shores.
"The last five years have had a heavy component of labor arbitrage," said Ann M. Livermore, the executive vice president in charge of H.P.'s vast enterprise business.
Rather than continuing to reap gains from labor arbitrage, companies will fight to hire skilled people for management and technical positions.
Can Apple, well, "Apple" not just distribution, marketing, and retail, but the global economy's lowest-common-denominator battle for "labor arbitrage," making it simpler, cleaner, and more productive?
With new information technologies allowing products and now knowledge-based services to flow more easily across borders, global labor arbitrage is likely to be an enduring feature of the economy.
Today, most outsourcing suppliers rely on this labor arbitrage; they can employ well-trained workers who are thrilled to work at the top of their country's pay scale, which happens to be far lower than ours.
The labor arbitrage is not what it used to be.
It's not just for the labor arbitrage, either, he says.
