keynote feature


run, unlikewhat happened to Japan, South Korea and other places.” He continued: “The same advantage applies to India. The


country has a huge potential for rural resource,whichwill continue to provide the benefits of lower labour costs. China has an advantage over India in that it has invested very heavily in good infrastructure for transportation logistics and related activitieswhich is very critical to developing the outsourcemarkets.”


ADAPTING TO CHANGE Kasarda agrees that countries like China are readily adapting to higher labour and other costs in the traditional outsourcing sites around the coastal areas by shifting production inland to suchmetro areas as Chongqing. He said this sort of activity is attracting considerable investment in IT production by such firms as Hewlett Packard and Foxconn. Kasarda noted: “Iwas recently asked to give an estimate of the amount of air cargo capacity thatwill be needed to ship upwards of 70 million laptop, notebook and netbook computers fromthe Chongqing area.” Solomon Cai, CEOof Shanghai-headquartered freight


‘Itwould be hard to ever ind another country to compare with China for its outsourcing capability’ – Cai


forwarder Globelink China Logistics, spends at least threemonths every year in overseas locationswhere he observes buying trends at first hand. He noted: “Itwould be hard to ever find another country to comparewith China for its outsourcing capability.” The size of the country’s own domestic economy and the number of skilledworkers available, its political systemand the size of its own internalmarket for the consumption of goods keep driving China forward, Cai pointed out. Theremay be somewho would like to see


nearsourcing becomemore prominent, but he considers that option is still a longway frombeing able to compare with outsourcing globally to the low-cost countries.


AIR LOGISTICSCHINA 13


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