Outsourcing set to leave China for Indonesia

12 May 2004
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13 May 2004

The days of taking advantage of cheap labour and outsourcing in China are numbered and companies need to look at other countries, according to a professor of economics.

David Foot, from the University of Toronto, said China's population growth would slow in the next decade and as the country became more industrialised and technologically advanced, wages would soar.

This was in stark contrast to countries such as Indonesia, India, Brazil and Pakistan, where the population was exploding and young workers would need jobs. These are set to be the offshoring locations of coming decades.

Foot said: "These countries need to create jobs for their young people. If companies want to contribute to social stability in these areas, they need to create jobs there."

He said purchasers who studied demographics had a better idea of future trends than those who did not, pointing out that what customers wanted differed dramatically according to their age.





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