"Unfortunately, most Western executives still make these decisions based on near-term operating considerations, especially driven by the quest for rapid operating savings given lower wage rates in emerging economies. Elsewhere, we describe this as "wage arbitrage"." [..]
"More sophisticated companies view offshoring from the perspective of "skill arbitrage". They understand that offshoring creates an opportunity to access distinctive skills."[...]
"This leads to a third way of viewing offshoring - as "skill-building arbitrage". We believe that the real opportunities created by offshoring can only be captured by companies that adopt this view. Rather than merely seeking to access distinctive skills, Western companies will benefit a lot more from offshoring if they view it as a powerful opportunity to participate in relationships and environments that can build capabilities more rapidly than would be possible elsewhere."
