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**Britiobby** · 02-02-2012, 05:55 PM

Everything goes in cycles.

I remember twenty years ago, when Call centers always looked at Omaha, Neb to set up shop because the labor there was cheap and they had invested a lot in their communications infrastructure. Their success in this area led to a stampede of companies relocating their call centers there. But eventually, due to demand, the labor costs started rising, especially for experience supervisors and managers. The savings started to evaporate but their infrastructure kept it going a while longer. To no ones surprise, other depressed areas in the US were able to compete with lower rates, and eventually other countries got into the game.

Costs are rising in China which will eventually move a lot of business to less developed countries where it is even cheaper. (granted after some infrastructure upgrades)
There will be a window for the US to reclaim a SMALL part of the business where the manufacturing cost differences can be offset by reduced delivery costs.

02-02-2012, 05:55 PM	#11
Britiobby Join Date Oct 2005 Posts 587 Senior Member	Everything goes in cycles. I remember twenty years ago, when Call centers always looked at Omaha, Neb to set up shop because the labor there was cheap and they had invested a lot in their communications infrastructure. Their success in this area led to a stampede of companies relocating their call centers there. But eventually, due to demand, the labor costs started rising, especially for experience supervisors and managers. The savings started to evaporate but their infrastructure kept it going a while longer. To no ones surprise, other depressed areas in the US were able to compete with lower rates, and eventually other countries got into the game. Costs are rising in China which will eventually move a lot of business to less developed countries where it is even cheaper. (granted after some infrastructure upgrades) There will be a window for the US to reclaim a SMALL part of the business where the manufacturing cost differences can be offset by reduced delivery costs.
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