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It used to be that companies flocked to Asia to satisfy their appetite for the short-term cost-cutting advantages of wage arbitrage. But today it’s high-end innovation — not low cost labor — that is the region’s main attraction.

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Western companies think too narrowly about the benefits of moving some of their business operations to . Motivated mainly by the short-term cost-cutting advantages of wage arbitrage they tend to overlook the long-term skill-building opportunities of working together with powerfully innovative Chinese entrepreneurs.

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Not too long ago, many companies were grappling with the question of whether to transfer part of their business processes to countries like and Fast-forward a few years and the decision has morphed. It�s not about whether to shift jobs from one location to another, but rather to decide which specific tasks should be done where.

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Plummeting telecommunications costs, the Internet and the digitization of paper-based business processes have made data entry, transaction processing and call-center support top jobs to transfer to low-wage countries. But today Fortune 500 companies are also farming out high-skill jobs in software development, manufacture design and pharmaceutical research to get new and better products to market faster.

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Two Articles: Innovations that once germinated in the R&D departments of large companies are now flourishing in a variety of settings. From garage start-ups in Silicon Valley to cutting-edge facilities in Bangalore, India, the world supply of knowledge is bigger and better than ever.font-family: And so is the reward for companies that can connect to leverage this wealth of good ideas. In this active global market for knowledge companies must become the active buyers, as well as active sellers of innovation. Another article points out: But today�s shorter product cycles make it difficult and expensive for even respected research powerhouses to do it alone. To make their innovation investments pay they must leverage multiple paths to market - even if the path to success is through another company�s business.

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Offshoring and the global labour market

Today, organizations see the substitution of foreign for domestic labour, a practice known as offshoring - as a tool to reduce the costs of doing business. More importantly, offshoring achieves a broad range of strategic goals, such as flexibility and access to expertise, that can transform also-ran companies into high-performing sector leaders. Offshoring also benefits the economies of all countries involved, injecting them with new energy, new ideas and new buying power. This report discusses the pivotal role of offshoring in human resources, and the benefits it can bring companies that adopt the proper approach. Rather than sacrificing expertise, Adecco research shows companies that transfer jobs to offshore locations actually build their process capabilities and improve the process of their business. Offshoring also delivers considerable economic advantages to the workforce of the country transferring the work and the country that receives the jobs.

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