Exact(16)
"It is almost like labour arbitrage.
Labour arbitrage is out; "intellectual arbitrage" is in.
Third was a "technical transformation", as firms shunned simple labour arbitrage in a drive for quality.
In the long run, he says, offshoring will no longer be mostly about labour arbitrage.
In the medium term, this "global labour arbitrage", as Mr Roach calls it, will not stop America creating new jobs.
And companies from other rich countries will probably continue to enjoy the opportunity for labour arbitrage for longer than American ones, says Mr Sirkin.
Similar(44)
H.P. continues to deal with the labor arbitrage issues.
The labor arbitrage is not what it used to be.
A new HSR connection in fact means increased competition, which means increased local production along with lower retail prices.14 New transportation options can also change the dynamics of labour market arbitrage in terms of whether an individual will enter the market.
Software programming, call centres and data-centre management were the first tasks to move, followed by more complex ones such as medical diagnoses and analytics for investment banks.As in manufacturing, the labour-cost arbitrage in services is rapidly eroding, leaving firms with all the drawbacks of distance and ever fewer cost savings to make up for them.
The level of research and development by foreign car firms in India is still puny, but in time that should come too.What India does not seem to give foreign firms is a clear-cut cost arbitrage over other places in the world, despite its vast and cheap labour force.
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