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Wednesday, August 02, 2006

The outsourcing debate (continued) | Economist.com

The outsourcing debate (continued) | Economist.com
Diana Farrell, director of the McKinsey Global Institute said “the debate about offshoring has been fuelled by anecdote rather than fact.” It then set about gathering data which, in turn, suggested some limits to offshoring.

It estimated, for instance, that only “13% of the potential talent supply in low-wage nations is suitable to work for multinational companies”, and it cited three main reasons for this: the lack of language skills; the limited capacity of the educational systems of the offshoring hosts to impart practical skills; and the lack of cultural fit.

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