There is a cost that is unvalued in utilizing Indian labor. The direct labor cost is easily determined and compared to other values. On top of this labor cost is time spent in completely defining a project, additional time due to miscommunications, and effort in managing the project from such distant separation.
While it is easy to demonstrate the difference between Chinese labor and American labor cost, other factors need to be valued. For instance, Callaway Golf has kept its manufacturing in the US, so that it is closer to its customer. By doing so, the company can respond more quickly to demand.
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