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Rough Guide to Outsourcing In China

zentec writes, "An article in Design News chronicles WiLife's outsourcing project to China (they make consumer surveillance cameras). It's a tale of a language barrier, misplaced EEPROMS, backyard engineering, incorrectly assembled parts, sloppy engineering, and flaring tempers. That, and an initial defect rate of nearly 80%." In the end WiLife seemed happy enough with their outsourced manufacturing. This is a nitty-gritty account of life under globalization.

34 of 181 comments (clear)

  1. Please don't insult Slashdotters... by xxxJonBoyxxx · · Score: 4, Funny
    It's a tale of a language barrier, backyard engineering...
    I hope you came to do something more productive than ridicule Slashdotters.
  2. And this is surprising? by Jhon · · Score: 5, Insightful
    From the article's author:
    In CM's defense, this is the most complex PCA they have manufactured to date. It pushes the limits of their capabilities. The main PCA contains three BGAs and several high pin density surface mount devices. The bulk of CM's output is fairly simple mice and game controllers. CM top management wants to work with WiLife because it forces their factory to enhance their capabilities.
    The author himself says they went with a firm that had never worked on anything more complicated than mice or game controllers. Of course they were going to encounter problems. And it looks like they were OK with that with the deal they were getting...
    1. Re:And this is surprising? by seanadams.com · · Score: 4, Insightful

      Exactly. There are precisely two kinds of contract manufacturers in the world:

      i) Extremely good ones
      ii) Extremely bad ones

      I have worked with both, both domestically and in Asia.

      To get a good CM to build your product you will have to choose them really carefully, and you will also need to have enough volume to make it interesting for them. They will gladly work for razor thin margins as long as you are building enough. However, even if your product is a big-ticket item, it is very hard to get any electronics manufactured in small volumes unless you can buy 100% of the parts from Digikey.

      With some excedptions, a good Asian manufacturer can get electronics built cheaper, faster, and with much better quality than any American shop. It's not just their lower labor cost but also that all your upstream suppliers will be geographically close to the factory, which not only drasstically lowers shipping and handling costs, but also allows the buyers to work with them directly instead of you haveing to go through at least one layer of incompetent middlemen.

      This guy had a bad experience. Shit happens. It is not indicative of what is possible with proper planning and a good business arrangement.

    2. Re:And this is surprising? by seanadams.com · · Score: 3, Informative

      And what exactly has the Professional Cricketers' Association and The Pennsylvania Council on the Arts to do with this ?

      PCA is industry lingo for Printed Circuit Assembly (with parts installed), as opposed to PCB, the bare board.

  3. the operative word by User+956 · · Score: 4, Insightful

    In the end WiLife seemed happy enough with their outsourced manufacturing.

    The key word: "happy enough". Meaning, not entirely happy, but they saved enough money that it doesn't matter if everything was stellar. It doesn't matter if the products have an operational life of 13 months. As long as they chug along for a while, and break outside of warranty.

    I'll keep paying a premium for german engineered and manufactured goods, thanks.

    --
    The theory of relativity doesn't work right in Arkansas.
    1. Re:the operative word by dan828 · · Score: 3, Funny

      Which is why open source products are taking over the market and grinding all of their competitors into the dust. Oh how I long for the old days when just about every computer sold came with commercial proprietary operating systems and businesses and government agencies would only use commercial office suites. I sure miss the quality!

  4. China by TheRecklessWanderer · · Score: 5, Insightful

    We test stuff from China. Most of it we don't buy because the quality isn't there. It isn't that much cheaper than the stuff that comes from Taiwan. The Korean stuff isn't bad, better than China, but is hit and miss sometimes. Doing business with China is hard because you really can't return stuff to them. Some of the more advanced companies have "depots" in Hong Kong, but not many yet. Look at Japan 30 years ago, or Taiwan/Korea 10 to 15 years ago, and they were in the same state that China is in now. Today, Japanese product comes at a premium, and is superior to most product (IMHO) that is manufactured here in North America (vehicles immediately spring to mind). Once the Chinese people get their head around the different methodology of doing business in North America, they will come in full force and North America will have some serious issues to deal with.

    --
    Mean what you say...say what you mean.
  5. Apparently "Measure Twice, Cut Once" is absent... by sethstorm · · Score: 3, Interesting

    With the apparent lack of quality control, seems that the job has to always be monitored. With all the extra time, you might as well send the work to a country that is a bit closer to the US/Western EU and get the job done right the first time. While worker-friendly countries also make mistakes; there is a better chance of getting it right with well-paid, US/Western EU workers than some country that treats its own Rust Belt worse than anything you would see done to the Appalachians or steel workers.

    --
    Twitter supports and protects racists - by smearing their critics with the "Hate Speech" label.
  6. Reminds me of this summer by Marxist+Hacker+42 · · Score: 3, Insightful

    This reminds me of a hand-generated flashlight we purchased this summer. The brand was the same as every other shake-and-get-light flashlight I had seen, but they had recently moved production to China. Sure enough, I couldn't get the flashlight to work when I needed it. Come daylight, I took a close look at the clear plastic case. Sure enough, the uninsulated wires on the coil that the permanent magnet passed through, were twisted together. The flashlight was completely sealed- no way to repair it except to take it back for exchange.

    --
    SJW: a person who perceives an injustice, and while correcting it, commits a greater injustice.
  7. I think I'd go Japanese by Colin+Smith · · Score: 3, Interesting

    When it comes to quality they know what they're doing, the management understand the value of getting it right. Of course by that I mean Japanese companies, rather than specifically japanese workers.

    http://www.reliabilityindex.co.uk/tophundred.html? apc=3128339010848601

    --
    Deleted
  8. Chinese massage parlors... by xxxJonBoyxxx · · Score: 2, Funny
    Al Mudrow's Tips For Traveling in China: 10. If you go out for a massage, which are common in China, make sure you specify to the receptionist that you want a "foot massage". I've been told a regular massage involves more intimate contact than you may be comfortable with.
    You've "been told" this, huh? By "a friend," I suppose?
  9. Globalists would trade with Nazi Germany by Travoltus · · Score: 5, Interesting

    as long as Germany's Jews made cheap lamp shades for America, free trade apologists would be in favor of letting the Nazi's own all our debt and our jobs.

    What with China's political purges (50 million dead there), harvesting of political prisoners (millions dead there) for body parts, the citizens slaughtering their baby girls (200 million dead there), China is in every POSSIBLE way worse than Nazi Germany.

    Welcome to the world of globalism and free trade: for America to compete, we need to go back to the days of sweat shops, factories falling apart, workers being chopped to death by faulty machinery, superpollution, and collapsing mines...er, wait a minute...

    Oh and before you neo cons say it, no, there isn't a new thing for misplaced workers to retrain for. Biotech is going offshore. Alternative energy is just going to replace traditional energy jobs. We're not going into a new era of explosive job growth - except, oh maybe the tourism, cashier, waiter and janitor industry. Got belhop hat?

    --
    --- Grow a pair, liberals... stop letting the Republicans bully you!
    1. Re:Globalists would trade with Nazi Germany by JordanL · · Score: 2, Insightful

      I was going to retort on how you clearly are trying to use an excess of morals to make up for a deficincy of economics... then I noticed your sig... "Libertarian Wingnuts".... why don't you leave economics policies to the big kids.

    2. Re:Globalists would trade with Nazi Germany by s20451 · · Score: 4, Insightful

      The irony is that China, fearing foreign influence, placed heavy restrictions on trade starting in the 18th century. As a direct result, they eventually fell so far behind the West that the British were able to capture Hong Kong by 1842, and had opened trading routes by force by the 1860s.

      If the USA closes its borders to trade, China's size and emerging economic power will mean that America will be fucked eventually anway. You've got the choice of being a barista now, or a serf later.

      --
      Toronto-area transit rider? Rate your ride.
    3. Re:Globalists would trade with Nazi Germany by Vicissidude · · Score: 2, Insightful

      Let's see, China is still far more "protectionist" than the US, but our current balance of trade greatly favors them. In fact, the US and it's "free" market runs a negative trade imbalance with most of our trading partners, and has done so for each of the last 30 years during the time of the "free" market fad. On the other hand, China and it's "protectionist" market has become the world's manufacturer of choice. While China effectively hands us our ass economically, people like you continue to falsely espouse all the benefits of a "free" market.

      With China currently raking in the dough by selling to a completely open US, they have absolutely no incentive to reduce their "protectionism". If the economic leaders in the US were truly smart, they would not continue to lecture China for what they "should" do and actually learn to do what the Chinese are doing.

      The theories of the "free" market as they have been implemented in the US are an abject failure when applied to the real world.

    4. Re:Globalists would trade with Nazi Germany by Vicissidude · · Score: 2, Informative
      The point I'm making is that China, the world's second-largest economy, is currently kicking the US's ass when it comes to trade. China is certainly not a free market. And with the way things are going, China will overtake the US as the largest economy of the world. That pokes a hole in the free traders' absolutist philosophy regarding the way economies should operate.

      Things will continue along this path until the free-traders acknowledge the problems with their philosophy:
      • Freely trading with protectionist countries such as China is not good economically. Giving these countries free and unfettered access to our markets while they limit our access to their markets provides those countries no incentive to change.
      • Freely trading with countries that can not afford our goods and services is not good economically. They can not buy our goods and services, so this trade is only one-way, further increasing our trade deficit and draining our money.
      • Offshoring jobs to other countries means lowering our standard of living, which is not good economically.
      We do not need to close our borders from all foreign goods. We can have fair trade treaties with third world countries. And free trade deals are perfectly fine with other first world countries which have protections for workers and the environment and who pay employees wages comparable to those in the US.
    5. Re:Globalists would trade with Nazi Germany by p0tat03 · · Score: 2, Insightful

      Disclaimer: I am a Chinese Canadian.

      I really have to object against the use of the word "genocide" in your post. The Japanese in WW2 were known to be especially brutal to the Chinese civilian populace, but what went on was classic pillage & rape, it's a long way from genocide. Don't use that word just to sound dramatic. I'ts like accusing a rapist of being a serial killer. They may both be terrible crimes, but they are not synonymous.

      And might I add that your evidence is entirely anecdotal? The presence of one (or even many) families with no killed/culled/harvested members is not proof that such systems do not exist. I myself know many Chinese who have lost at least one relative to the political purges, or otherwise perished in the ensuing mayhem. I make no attempt to justify Comatose's numbers, since I honestly do not know the bodycount off the top of my head (a bit morbid for idle trivia, no?), but honestly, this shit does happen.

      That said, I also object to the notion that China is in every possibly way worse than Nazi Germany. Honestly, there's a pretty wide gap between collateral civilian death from brutal political revolution... and systematic extermination via concentration camps and gas chambers. Genocide is, in my books anyway, a whole lot worse than your standard vanilla repression.

  10. China Vs USA by russ1337 · · Score: 2, Funny

    >> It's a tale of a language barrier, misplaced EEPROMS, backyard engineering, incorrectly assembled parts, sloppy engineering, and flaring tempers. That, and an initial defect rate of nearly 80%."

    That sums up manufacturing in the USA, so what problems did they have in China?

  11. Re:Apparently "Measure Twice, Cut Once" is absent. by regular_gonzalez · · Score: 2, Insightful

    With all the extra time, you might as well send the work to a country that is a bit closer to the US/Western EU and get the job done right the first time. While worker-friendly countries also make mistakes; there is a better chance of getting it right with well-paid, US/Western EU workers than some country that treats its own Rust Belt worse than anything you would see done to the Appalachians or steel workers.

    I'm a bit befuddled by your reply, considering your sig. Without knowing the marginal cost of a move to a country with higher skilled workers would be, it is impossible to make any kind of judgement. Perhaps it is still significantly cheaper to stay in China, manufacturing problems notwithstanding. In fact, I'd wager that it is, otherwise they would already have beat a hasty retreat.

    --
    Due to circumstances beyond my control, I am master of my fate and captain of my soul.
  12. Communism sucks by Shao+Ke · · Score: 2, Interesting

    Having worked with many people from the area of Taiwan/China in engineering, I have found that many of them don't understand the concept of craftsmanship and maintainability. They're still building crap. I've talked to people who have worked with engineers from the former Soviet Bloc who are the same way. At a company I worked for, a Russian hardware engineering manager bought basically black market Broadcom ethernet PHYs which had some bad bugs. Broadcom also refused to support us because the chips were supposed to have been destroyed. I think Communism killed the concept of quality in these countries.

    1. Re:Communism sucks by wumingzi · · Score: 2, Informative

      Having worked with many people from the area of Taiwan/China in engineering, I have found that many of them don't understand the concept of craftsmanship and maintainability....I think Communism killed the concept of quality in these countries.

      Pity Taiwan was never Communist, or your argument might have some merit.

  13. what are you really saying? by davebs · · Score: 2, Insightful

    Yes, it's true, an engineer in China is typically much less productive than an engineer in the united states. After all, you often get what you pay for. However, I really think all these anti globalization types need to take an econ 101 class. There are problems with what is happening now, but I think the world needs to figure out some way to get along, and protectionism really isn't the answer. Don't people in other countries have just as much right to a job as people in rich countries? I think they do. If companies were somehow penalized for "outsourcing" jobs (or, in other words, giving the job to the guy who they *think* can do it best and cheapest), it would be adding unneeded bloat and cost to products. The consumer ends up paying in the end and weak firms are allowed to continue operating. I'm sorry, but engineers (and all kinds of other white collar & blue collar jobs) are just not as valuable as they used to be to the market place because there are countries like india and china that are willing to do it much cheaper. But seriously, everybody talks about equality in the world and freedom until other countries are allowed to compete with you for your job, and then you're all about giving unfair advantages to rich, fat countries. A bit hipocritical i think.

    1. Re:what are you really saying? by db32 · · Score: 2, Interesting

      I suppose it depends on the specifics of "protectionism". I mean realistically, the whole cheap labor thing in the US has been made illegal for good reason. Child labor, sweat shops, and don't forget "company towns". All of these terribly unethical practices are illegal here stateside, but not illegal in many of the cheap offshore places...in fact, in quite a few that is what makes them cheap. I don't think we should ban offshoring, or even penalize it. I think we should just enforce standards on the companies wanting to offshore. You will make sure that your offshore business partners aren't doing the things that are illgal here or we nail you too. I mean after all...its ok to go after 'sex tourists' for going over seas and sleeping with kids because its legal there, why turn a blind eye to companies effectively engaging in the same types of quasilegal behavior just because they turn a buck doing it.

      --
      The only change I can believe in is what I find in my couch cushions.
  14. What you see is not what you get by tttonyyy · · Score: 3, Informative

    I remember my first encounter with Chinese manufacturing.

    The factory had pictures of their product in their brochures. I was about to place a sample order when I noticed a picture of the product being made on their production line. It looked NOTHING like the one in their brochure. Closer inspection revealed that their product brochure consisted of products made by reputable manufacturers but with the brand names edited out (quite poorly). Shame on me for not spotting something so obvious before.

    Their actual products - a poor quality copy.

    Of course, that is my experience as a sample of one out of one. Hardly representative, I know, but kinda representative of TFA. :)

    --
    biopowered.co.uk - catalytically cracking triglycerides for home automotive use since 2008. Just say no to big oil!
  15. No mention of the "Third Shift" by tlhIngan · · Score: 5, Informative

    The third shift is slang for when the CM continues to manufacture more of your product without being asked about it. The goal, of course, is to shunt this product to a separate market and undercut your production (after all, they don't have marketing, R&D, etc to pay for). Since these CMs often handle inventory for you, they can order extra parts without you knowing.

    Or they take your design, modify it, and manufacture their own (possibly inferior) version. They have everything they need - board layouts (schematic can be derived), binary object code (for FPGAs, flash memory, etc), parts lists, etc.

    Just a hazard of outsourced production.

  16. Same experience different country by Anonymous Coward · · Score: 2, Interesting

    We experience the same kind of issue with our foreign employees (consultants):

    * Not very hard workers
    * Always on a leave
    * Snack and coffee every 30 minutes
    * Think they know better than you
    * Surf and chat most of the time rather than to improve their competency in the offering
    * Request business class for a 8 hours flight because else this is too painful
    * Most extended expense sheet you can imagine

    By the way we are a German software company with an office in the US....

    1. Re:Same experience different country by LindseyJ · · Score: 2, Insightful

      Wow. If I am reading your comment right, you are trying to say that Americans are not good workers, based on your experience with American consultants. Consultants.

      Also, this point: "* Think they know better than you".

      Well, yes. I should hope you are hireing consultants that know more than your employees. What is the purpose of spending money on their consulting if you could just ask Joe down in Marketing and get a similarly educated answer?

  17. Engineered in America by bill_kress · · Score: 2, Insightful

    Perhaps we need a campaign like "Look for the Union Label"...

    From what I've seen, products engineered 100% in the US should have significantly better quality, why not point that out?

    I'm not really against Chinese outsourcing, but if there IS a quality difference in the end product, then that information could be vital to consumers.

    Not that we have the best engineering consistently, but I've never seen a product made in the US released with such poor quality as some of the imports I've seen.

  18. A Newbie Goes to China by StateOfTheUnion · · Score: 4, Insightful
    If this guy's engineering and contracting skills are anything like his travel advice, it's no wonder that he wasn't well prepared for the challenges. He gives some silly travel advice . . . I have been to China, Taiwan, Indonesia and a host of other countries executing projects. I can say from experience that: Western style hotels purify their water. It is safe to drink. Silverware that has been washed properly doesn not need to be "sanitized with tea." Fruits and vegetables that have rinds or peels can be eaten uncooked if they are peeled first (e.g. bananas). You don't need a GPS to survive in a foreign country. Westerners have traveled to foreign countries and returned safely since well before the first GPS satellite was launched. In fact if your in a bad area of town a GPS may be just the thing to attract a snatch and grab thief. Same holds for mobile phones. Nice to have, but people have been going to China since well before mobile phones. Though some of the advice given is good, some of it is plain rubbish. China is offically atheist, but expressions of religion are tolerated. And overstaying your visa is not a courtesy issue, its a legal issue. This kind of stuff sounds like the writings of someone that read an outdated travel guide for the xenophobic. I can only imagine that some of the problems this guy had with his contract manufacturer were because he know what he was getting into either travel wise of contract manufacturing wise . . . For example, how come he didn't have another copy of his design drawings for the plastic case with him? That was poor preparation. Not having a spare copy can cost thousands of dollars when you're overseas. And did he really think that the CM woudln't want to redesign the case? Their engineers often try to redesign things to save costs of improve performance. It sounds to me like this guy's bread and butter is components in cameras . . . not plastics injection molding. Advice from the plastics company was probably good helpful advice. Why would he discount such advice? Why would he not put enough float in his schedule so that the manufacturers engineers could review his designs . . . after all, they are the manufacturing experts. I think that this article would be better titled "A Newbie Goes to China" From the linked article:

    Al Mudrow's Tips For Traveling in China: 1. Plan a trip to China the same way you would plan an extended backpacking trip into the wilderness. Start with a backpacking checklist. Leave off the obvious items of tent, sleeping bag and sleeping pad. Pretty much everything else on your list is useful. 2. China is a cash-based economy. Credit cards can be used in high-end western hotels but nowhere else. You can get cash through your hotel, banks or "grey-market" foreign exchange shops. 3. China is mostly BYOTP (bring your own toilet paper). Always carry tissue paper with you when you venture out of the hotel. 4. Don't drink the tap water, no matter how fancy or western your hotel. Use provided bottled water. I carry water purification tablets if I want additional water. 5. Be very aware of traffic as you are walking around. Cars and motorcycles come in all directions. Motorcycles especially seem to obey no traffic rules. Vehicles commonly travel on sidewalks as well. Be especially careful of trucks made from converted farm roto-tillers. They don't have brakes. 6. Take a GPS receiver with you. Mark the important waypoints like your hotel, your CM factory and vendor locations. You can use it guide your way when your CM forgets to pick you up, or when guiding your taxi driver, who will inevitably get lost. 7. Always carry a mobile phone with you. Find out before you leave if your mobile phone will work in China. 8. Get a Skype account and purchase Skype-out minutes. Phone calls back to the U.S. and within China are about 3 cents a minute. Quality is better than both mobile phones and even local telephones. 9. In restaurants, use the tea they pour you to sanitize your eating utensils and dinnerware. Only eat food

    1. Re:A Newbie Goes to China by eechuah · · Score: 2, Informative

      I disagree with the poster above. I have been to China and am a Malaysian. While it's true that water is safe to drink mostly, I find that the bacteria in the water is different from that in the US. Therefore, if you've been in the US for a long time, you are almost guaranteed to get some stomach irritation when you drink tap water in a 3rd world country. I generally recommend guests from US to drink bottled water when they visit.

      Washing/sanitizing silverware with tea when eating in Chinese restaurants is partly cultural, and also partly because the restaurants usually wash silverware by hand and they aren't very clean. It is normal to do this in normal street-side restaurants.

  19. underemployment by Travoltus · · Score: 2, Insightful

    That means, a lot of college degreed CIS/CS/MIS grads who are working at Wal Mart or other lower paying jobs because their degrees that they got after 1995, with tons of student loan debt, are worth little if anything because of offshoring.

    Let me repeat: they have jobs, ergo they're not unemployed. But they have jobs that are different, and far, far lower paying, than what they were trained for. Which is why the middle class is shrinking. But don't believe me. Read this. http://www.factcheck.org/article249.html

    BTW the United States goes by a U3 style of unemployment measurement which puts us at 4.7%; if we go by Europe's U6 standard, the BLS says we're closer to the 9% level. That is very close to Europe's horrible unemployment rate which you hear so much about on Fox News.

    --
    --- Grow a pair, liberals... stop letting the Republicans bully you!
  20. Re:Outsourcing doesnt differ from any other busine by killjoe · · Score: 2, Interesting

    I should not reply to cowards but....

    Is that really how you think? That the only measure of gain and loss is by examining each one of your interactions in isolation?

    Anyway to answer your question...

    Yes he won. I shopped there, his profits increased, my spendable income decreased, the money I could have earned in interest by saving that money decreased, the money I could have made by investing that money decreased.

    He won, I lost. I lose everytime I pay interest, I win every time I make interest.

    --
    evil is as evil does
  21. Most said are true, BUT not all. by freedom_india · · Score: 2, Interesting

    I was in China for a training in Guangzhou and i wish to add/differ the following:
    1. Hotels and restaurents are not that clean. McDonalds fries are the closest thing you get to clean cooked food. They prefer to just dump living animals in boiling water enough to kill them, not cook. This approach is not to our liking. And it smells horrible.
    Hotels are aquariums, and you can see the waiter move to the next table with a live Lobster, put it in boiling water for a few seconds to kill it and then server it. The diners would cut up this live lobster while its writhing trying to escape and eat it off.
    Enough to make you and me throw up.

    2. Take enough ready-cooked food with you (Batchelor soup packets, noodles), etc.
    Chinese food is NOT chinese take-away in US. You would be surprised at what they eat.

    3. Take some mandarin language visiting cards of your Hotel address for Taxi. Taxi drivers can't speak or understand English and if you show the Mandarin card they will drop you exactly at Hotel. Else be prepared to spend about US$50 on taxi wandering alone.

    4. USD is NOT universal currency here. RMB is their national currency, and they don;t accept USD at all sundry shops. Don't expect the Hotel to change your USD.

    5. Banks do change USD to RMB but be prepared have official delays, lunch, etc., Be prepared to spend atleast 2 hours in changing money. If you are flying through HK, please change USD to RMB in HK itself. Saves lot of trouble.

    6. Carry your passport ALL along. Be prepared to answer Police queries at any time. Address the cop respectfully unlike here. Loss of face is very important here and if you abuse or insult the cop, be prepared to have a very hard time. OTOH be respectful and bow as you hand over your passport, you can expect a quick wave over. Its not just arrogance, its their culture. You can argue respectfully, without being angry. If still having problems, ask for written orders from his superior. That will stop them in their tracks like anything.

    7. Hand over cash/visiting cards with BOTH hands. This signifies respect. Expect the same.

    8. Make sure your contact there is a high-ranking official who has subordinates reporting to him. That way you can be sure he would assign some subordinates to "guide" you around. These people are your only friends in China.
    They would buy you lunch and dinner as they would be instructed. Do Not stop them and offer to pay as its an insult.

    9. Bargain at electronic shops a lot and visit malls WITH a Mandarin-speaking local.

    10. Do NOT think it is easier to rent and drive a car in China. Roads and highways in Guangzhou are very broad and much better than here, BUT the similarity ends there. The drivers are horrible and buses/trams/cars go at 60 mph inside city lanes. If you have the mentality of Genghis Khan, you can drive your own car.

    --
    "Doing what i can, with what i have." ~ Burt Gummer
  22. Re:Outsourcing doesnt differ from any other busine by walt-sjc · · Score: 2, Insightful

    Let's be VERY clear here: the ONLY reason globalization and outsourcing is expanding is because LABOR costs in India and China are significantly lower. If we only paid our people $1,200 / year like they do in China, then we would blow the chineese away. Product quality of outsourced manufacturing is also typically lower mainly due to the huge turnover rate in chineese companies - they have increasing competition for qualified workers and pay bottom dollar for them.

    The FACT is that US productivity continues to rise due to the FACT that people are working harder, longer, and developing new business systems and technologies. Check the Bureau of Labor Statistics web site for the data.