I watched the following video today. http://video.ft.com/v/2317219704001/Indian-outsourcing-2-0. Very interesting.
Price arbitrage has been clicking away in the background for years. The wage differential is still 10:1 in many areas, including accounting. Technology has allowed access to 2nd or 3rd world countries to compete. Survival of the fittest now? I think the situation and mechanics are raw. People need to realize this in the west. At the moment they do not. We are still in the non acceptance mode and business as usual. This needs to change. People and business are not proactive enough!
Already in London we have a wage rate which is stagnant. But what is next? We see that real inflation, due I think to money printing, not what the government reports could be as high as 9% (According to Max Keiser – RT). Have your wages gone up by 10%. Not so, if you are like me. Your real incomes are down. Part of the reason is background price arbitrage.
The pressure is certainly on. The best advice I can give to people in the west is:
- Learn the language and favorable parts of the culture.
- Go and study there and immerse yourself in the country. See the good and bad.
- Business participation in eastern markets is now a must. The demographics and customer buying power is enormous in every aspect. http://www.bbc.co.uk/news/business-23006910 is an example.
- Find way to enter the eastern market safely. You need trustworthy partners. Due to the a stratified society, you will find a high rogue count in my opinion and experience. There are great people everywhere too.
- Specialize in what you do, because only the best will remain. In the next 10 years we may see ‘vacant villages online’. That is domains that are dormant with no traffic whatsoever.
- Think Internationally, in terms of taxation, business, selling and commerce. “Your country is the earth, and your religion is to do good” is what a wise gent once said.
- And always think BIG as Mr. Trump would say.