**LIFE**TECH**NEWS**

Wednesday, August 16, 2006

Another reason for offshore

I was reading Jonathan Schwartz's blog Lunch with Prime Minister Tony Blair... . And he pointed out:
" My point - shared by many in the room, but not all - was that Silicon Valley's (and certainly Sun's) business is largely insensitive to the price of labor on the world market. As one of my staff members said recently, "when it comes to hiring, this ain't Costco, we don't buy in bulk." If we can bring a product to market three or six or twelve months earlier than planned, wage rates as a percentage of total return aren't even measurable in calculating returns. (What was Bill Joy's starting salary? My point... who cares.)"

Then why all those big companies went offshore? Not just for the cheap laber. But for the cheap and brilliant mind. That's why all the high-tech companies has branch in Bangalore and Beijing, Shanghai ... where lots of talents are.

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