Companies will give altruistic or logos two reason, but the reason as always is money. A few years ago I spent a month opening up an offshoring office for my company in India. On paper the numbers all looked great. But companies do at fully factor in the things mentioned in the article, in addition to things like travel for domestic employees to oversee or monitor, local disruptions(we had to shut down for two days once because a famous actor died and people rioted), but most importantly, rising labor costs as more companies have moved over there. There isn’t an unlimited number of people who can do many of these jobs, so competition drives up the costs quickly. Ultimately it can be easier and more predictable to keep the jobs here.
- Covid disruptions showed supply chain vulnerabilities - companies tired of getting ripped off by and dealing with China and their increasingly hostile business environment - wages rising in China, demographics are terrible - between China and Russia a more hostile geopolitical worldwide environment - automation makes it cheaper to do here Good for US workers but could lead to modestly higher long term inflation.
Same. I have staff in India. Getting more expensive every year by about 15% a year. Right now it takes 1.3 overseas to do a job of 1 stateside. They are doing it at 1/3 cost. At 15% cost increase a year it’s about 5-7 years until break even but I suspect the costs will rise faster. Turnover is high too.
