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Don't outsource, relocate

A wrinkle in the outsourcing trend: give laid-off workers the chance to relocate to new jobs in foreign countries, at local wages. From Information Week:

The climate is warm, there's no shortage of exotic food, and the cost of living is rock bottom. That's IBM (NYSE: IBM)'s pitch to the laid-off American workers it's offering to place in India. The catch: Wages in the country are pennies-on-the-dollar compared to U.S. salaries.

Social philanthropy or feel-good outsourcing?

The New York Times has a piece on Serebra Connect, a freelance computer work marketplace with a social philanthropy twist:

The World... Now Flatter Than Even Tom Friedman Ever Imagined

An untold number of business books heralded the new age - when all manufacturing would end up in China, and all services in India. But it's taking just a few blips in the world economy to undermine much of the competitive advantage of Chinese factories and Indian call centers. A weak dollar, rising fuel prices, and a global recession are all conspiring to undermine the cost advantage of offshoring. Oh, and then there's those pesky rising wages in places like the Pearl River Delta and Bangalore. The world really is flat... as BusinessWeek reports:

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