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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1384 |
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Bruce commented further,
Another report from Deloitte Consulting throws cold water on these estimates. It notes while direct wage costs may be 80 percent lower in India, total labor cost savings are much more modest-10 percent to 15 percent for most companies. The reason is that there are important added costs to doing business in India that eat up much of the saving...
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Higher cost for travel, communications, equipment and managerial oversight are some of these. But the larger costs are for lower productivity, cultural differences and incompatible systems (Bartlett, 2003, ¶ 4).
Bartlett continues, “The Deloitte Consulting report goes on the detail several case studies where companies went into India thinking that they would achieve significant savings only to find that it was not worth the effort†(Bartlett, 2003, ¶ 5)...
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