Offshore leave

The idea of atypical 21st Century American manufacturer these days is becoming something of an anachronism, thanks to the increasing reliance on outsourcing

The two most attractive countries to U.S. manufacturers looking to relocate some of their activities offshore are China and India, for reasons that go beyond drastically lower labor costs. On a wageper-hour basis, India will generally be more expensive than China, says John McKcnzie, partner in the international law firm Baker & McKenzie (www.bakerinfo.com). Why then would a company choose India over China?

Skill sets are important, says McKenzie. Many firms are moving R&D, software programming and service activities (e.g., call centers) to India in part because you are likely dealing with people who speak English. If it is not their first language, they speak English at least as well as their first language, McKenzie notes.