Interview with Narayana Murthy - CEO of Infosys, one of the biggest (maybe the biggest) outsourcing player in India. By McKinsey, no less.
"Q: What you're saying is that offshoring is more than just a game of arbitraging labor costs.
A:Yes. It's about distinctive capabilities that leverage the economic advantage of having cost-effective talent..."
The beacounters are great at make-believe. This question is a little like Zeno's Paradox. How can capabilities be distinctive all the way up value chain if everyone's outsourcing them to the same people? In the end, that just means everyone does everything the same way. One of the bigger problems with outsourcing.