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The thing with outsourcing is, the vendor will themselves set up shop wherever the customer wants. In this case all the chinese companies are simply setting up
by yalogin 4y ago
The thing with outsourcing is, the vendor will themselves set up shop wherever the customer wants. In this case all the chinese companies are simply setting up plants in India and Vietnam, so they end up not losing any business in the short term. Same thing happens with software. All of the India consulting firms set up shop all over the world, for example Mexico to provide similar time zones to their US customers yet reduce costs. The customer gets to say we are not relying on country X and the vendor still has that contract.
- bergenty 4y agoIt makes a difference though. The Indian factories hire all Indian staff and this makes it resilient to any trade war issues that may arise between China and the U.S.
- checkyoursudo 4y agoSecondary sanctions may hit the Chinese-owned Indian companies, which could make them no more resilient at all. No? It seems like doesn't matter so much who is employed there as much as who owns them.
- biztos 4y agoI realize the US-India tech relationship is very resilient, but don’t Indian companies run the same risk in principle by staffing the contract shops in Country X with Indians?
- Terretta 4y agoThis is one problem with the BRICS narrative.