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Will China or India ever get expensive for us to buy or outsource from??

Discussion in 'BlackHat Lounge' started by dog-tag, May 2, 2012.

  1. dog-tag

    dog-tag Senior Member

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    I would like to know do you think China or India get expensive for us to outsource work to?
    Will it get expensive for us to buy clothes etc from?

    These 2 countries are actually super trading powers now in their own right, and the world is now trading around them... but with that being said, will it get expensive? Surely mass producers like these can't stay cheap forever?

    Opinions please......
     
  2. lancis

    lancis Elite Member

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    I think that globalization is closer than we tend to think. The prices in Europe will go down in the next decade, in Asia will go up and everything will reach an equilibrium.

    I don't have any solid data to back up this opinion, just my observations from business trips.
     
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  3. calebmann

    calebmann Power Member Premium Member

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    well if your in that line of business.. if they do get expensive they will be replaced. who knows though, from what i know china is beginning to thrive, they are on the verge of building a strong economy that will pass us up in alot of ways. They will be the ones that will need providers sooner or later.. maybe? lol
     
  4. oxonbeef

    oxonbeef BANNED BANNED

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    With the quality I get from the work I get from India I don't know
    why they aren't charging top dollar already.
     
  5. cashnone

    cashnone BANNED BANNED

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    I think so, but I do know if they ever do, just go to the next country for workers. If prices start to go up people in other countries will see opportunity and develop the skills required. Cheaper labor will never disappear..... Unless the USA dollar really does go to shit...in that case i'm moving to Europe... <3
     
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  6. kirkonpolttaja

    kirkonpolttaja Senior Member

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    in near future all outsourcing will go to africa, whole africa (excluding south africa) is quite poor and they need to face same industrial phase as others have.

    But i have some doubts because greenpeace and other eco-nazi-anti-globalization-groups-which-exploit-globalization-themselves will say that it's racist to give "poor" jobs to 3rd world when they dont have food and they ignore the fact that labour will make their economy richer and they afford to get proper water infrastructures and flourish like happy humans does.

    Those countries which are very desperate to do work, will be target for factories, there is 2 sides in the coin.
     
  7. Winchester

    Winchester BANNED BANNED

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    As a middle class rises and the culture becomes more consumer oriented it will of course get more expensive; and then we will shift to places in the middle east, and eventually Africa. For manufacturing costs in China have already started to rise, a lot of it is getting moved to other Asian countries like Vietnam
     
  8. dog-tag

    dog-tag Senior Member

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    I think myself that Africa will emerge stronger in about 20years.
    They're only on their feet now, and internet is just going into boom there too.

    I can see from here that Asia is getting more and more expensive, and eventually it
    will shoot itself in the foot... but the question is who will get the work then?

    I find it hard to judge... but realistically I think countries like the US will put huge taxes
    on things made in China etc to protect its on economy. I think trade tariffs and side
    deals will become more common place, and world war 3 will be an economic trade war.
     
  9. BlackBoxTR

    BlackBoxTR Regular Member

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    It is fact that the wages of Chinese workers has already increased, you can read at every newspaper that some companies are already planning to produce at another country.

    It`s simple a question of time to get at a similar range like europe. The good part of this is that this will not effect immediately the IM sector, so don`t worry, there is a left time for us IM.

    Happy outsourcing ;)
     
  10. shariqcomp6

    shariqcomp6 BANNED BANNED

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    it depends on the law of supply and demand...

    indian and china have huge population.... so the labor and cost of living is low....average daily wages are around 8$ per day!

    for next 5 years there wont be much hike...but soon the demand will rise...so the rates rise
     
  11. Peter Shaw

    Peter Shaw BANNED BANNED

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    I think the prices will stay as they are for the next few years. There is still a lot of unemployment in countries that provide cheap supplies, and wages are still pretty low, so im sure the prices will stay the same for a while.
     
  12. JACOb5

    JACOb5 Junior Member

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    I'm from south africa and honestly i dont think outsourcing will move to africa any time soon. Reason being i dont think they will be able to get the required know how and resources to do the job in time before some other country grabs the offer. Do you really think that a person who knows how to farm and build straw houses will be able to write you a article without broken english? No.

    Say what you will,i have been to the less developed parts of SA, and if its any worse up top its still a looong way to go.
    Samsung Galaxy S2 and Tapatalk.
     
    Last edited: May 2, 2012
  13. illfounded21

    illfounded21 Senior Member

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    Interesting question.

    I think you will see prices rise in both countries respectively, with wages rising steadily in both countries in recent years. A recent trend by US/EU companies is to look elsewhere for outsourcing needs due to this rise in wages.

    I cant see it becoming incredibly expensive to buy products from China/India, but labour increasingly so.
     
  14. lancis

    lancis Elite Member

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    Its a matter of education I believe. Hows the education level in South Africa comparing to Asia?
     
  15. ajithrocksca

    ajithrocksca Jr. VIP Jr. VIP Premium Member

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    That will not happen.. because the population of India and china amounts to one third of the world population.. and human resources is the biggest asset of these countries and they will not outsource things from outside.. They remained strong during the recession mainly because of this and a high domestic consumption.

    @ OP

    A person with a daily income of 50 cents in India is considered as a person living above the poverty line and yet there are 40% (close to 400 million people) who live under this poverty line.. Can anyone in the western world live with an income of 50 cents a day? not even beggars in the western countries can live with that kind of income.. Which means we will get a happy work force at a low rate; a $400 per month salary for a well educated guy is still an awesome salary in India. In the near future India and china will continue to be the place to outsource.
     
  16. JACOb5

    JACOb5 Junior Member

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    @lancis: generally, in my opinion worse. Yes we do have universities with international degrees and whatnot, but most cant afford uni. And those that can surely wont be doing outsourcing work for minimum wage. Public school system is okay at best..

    Samsung Galaxy S2 and Tapatalk.
     
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    Last edited: May 2, 2012
  17. mojstermiha

    mojstermiha Regular Member

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    I have a questions for all freelancers:) Is it part of the Indian culture to negotiate about the price so long and strongly? Because I have freelancers that beg me for work every month and after I give them a 1 hour project they spend the next 2 hours negotiating the price. I don't get it:p
     
  18. ShadeDream

    ShadeDream Elite Member

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    I think it will still take years for anything major to happen, especially because of the size of the population. But who knows, this is just my opinion.
     
  19. mmguru770

    mmguru770 Regular Member

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    http://www.youtube.com/watch?v=ZtbyVFLl_7U
     
  20. ajithrocksca

    ajithrocksca Jr. VIP Jr. VIP Premium Member

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    You are right.. bargaining is in our culture.. extracting the maximum out of every possible opportunity, sometimes we over do it.

    For example.. if a person have a plantain tree (banana tree) in his back yard, he will use the leaves instead of plates, use the fiber from the leaf stalk to make garlands, use banana as food (both raw and ripe banana), use the flower as food and medicine, use the plantain pith as food and medicine and we will not even leave the root alone, and cook it (tastes similar to potato just a bit harder). It is not only with this, in every aspect of our life we try to maximize the utility of everything that is around. Till date our economy is a savings based economy, I am living in the US for around 5 years now and I don't have a credit card, my wife earns around 11k a month and she don't have one either.

    It is this aspect which made us survive the colonialism of the British, and despite the wealth lost we are regaining a lot of lost ground. I do agree we over do the bargaining bit, but still Indians do slog it out until the work is done..
     
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