#6 Labor Arbitrage???

Everyday I drive past hundreds of businesses taking advantage of the Global Labor Arbitrage situation here in Delhi. Businesses across Delhi NCR (National Capital Region) thrive on the cost savings they can offer their customers (or their corporate offices) by employing high skilled workers at a dramatic cost savings.

This is a hot topic in America, one that is debated constantly in the press. Is it right to shift local jobs from Main Street, USA to Mangalore, India? I am not going to try to offer an opinion on this matter, or state opinions on this practice.

This blog post is going to discuss a far graver labor arbitrage situation... the outsourcing of machines.

Yes, you heard me Heavy Machines, be on high alert. Your jobs are in danger of being outsourced to low cost labor across India. Cranes, Steamrollers, and Bulldozers beware. Your jobs are no longer safe. I hope you have invested wisely, and put money away in an emergency fund - because across India construction foremen have found a way to replace you.

We no longer have a need for your heavy lifting abilities, no need for your fancy hydraulics & earth moving potential. Your have been made redundant. It turns out we can do your job more cheaply with a hundred men.

Sure, it takes a bit longer (years longer in fact), but the job is done the same in the end. And besides, the cost restructuring opportunities are huge. I'm sorry, but we can no longer be bothered to be experts in non-core business functions. We thank you for your years of service, but unfortunately we would much rather shift these roles to "business partners" who can augment our "operation expertise" while effectively allowing us to cross-synergize our capacity management.

So, enjoy your last few months of work. After the Commonwealth Games have come and gone, you can pack your things and move on to Vietnam - I hear they still have need for the general skill sets you posses.

As for us, we've already begun replacing you. Just have a look around - and you will see your replacements hard at work.

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richa singh said...


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