Will Outsourcing Follow the Auto Industry?

Filed in archive Intelligence on July 4, 2008

Photo courtesy of iStockphoto, Alexey Dudoladov

A couple of decades ago, when the Dollar was relatively weak against the Yen, Japanese automakers began opening factories in the US. Now, GM is advertising "American Brand" cars, cars with a traditionally American brands even though they're manufactured in Asia, Latin America or Canada, and Toyota, Honda and other Asian marquees are quietly building their most successful models in the US.

It seems as if outsourcing may be seeing the beginning of the same trend. In a recent article in the IT Examiner (India), Harsha Pramod described a nascent move by Indian outsourcers to open US-based offices.

Whether or not these new branch offices have the staying power of the US-based manufacture of Asian-marquee vehicles remains to be seen, but certainly an advantage could go to those global outsourcing provider who have the ability to bring in the lowest-cost AND highest-quality talent to a particular task.