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Dell To Leave China For India

timothy posted more than 4 years ago | from the in-these-troubled-economic-times dept.

Government 352

halfEvilTech writes "India's Prime Minister, Manmohan Singh, told the Indian press that Dell chairman Michael Dell assured him that Dell was moving $25 billion in factories from China to India. Original motives were cited for environmental concerns. But later details come up as to Dell wanting a 'safer environment conductive to enterprise.'"

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Wow (2, Interesting)

FlyingBishop (1293238) | more than 4 years ago | (#31617590)

If Dell can guarantee their parts are made in India and not China, I just might be getting a Dell next year.

Re:Wow (3, Informative)

MrEricSir (398214) | more than 4 years ago | (#31617716)

Dude, you're not getting a Dell. Many of the internal parts WILL be made in China -- chips, circuit boards, etc. There's simply nowhere else that makes these things but China.

Re:Wow (2, Insightful)

bigmattana (646048) | more than 4 years ago | (#31617936)

This is not true. Few of the chips are made in China. Circuit boards are likely to be made in Taiwan. Individual components on the boards besides chips are made in lots of countries. Dell used to assemble many of their machines in Austin, TX until recently.

As with a car, most complex machines do have parts from all over the world. We are only stuck with no other option than China if we continue the current trend of giving all manufacturing to China. This can be reversed if you look at where the items you are buying are made.

Re:Wow (3, Funny)

SomeJoel (1061138) | more than 4 years ago | (#31617960)

This is not true. Few of the chips are made in China. Circuit boards are likely to be made in Taiwan.

You may not realize this, but Taiwan is part of China.

Re:Wow (2, Insightful)

Darkinspiration (901976) | more than 4 years ago | (#31617992)

Only if the chinese really decide to invade.

Re:Wow (5, Insightful)

C0vardeAn0nim0 (232451) | more than 4 years ago | (#31618030)

taiwan is an autonomous, rebel, province of china. they don't answer to beijing. the only reason most conuntries don't recognize taiwan as independent is to avoid diplomatic tensions with beijing.

if you hate mainland china's abuses, buy from taiwan. that's money that doesn't go to beijing spend in censorship.

Re:Wow (5, Insightful)

the linux geek (799780) | more than 4 years ago | (#31618340)

No, the mainland is an autonomous, rebel area controlled by Communist bandits. Taiwan is the seat of the Chinese government.

Re:Wow (4, Insightful)

Bearhouse (1034238) | more than 4 years ago | (#31618032)

Well, that's almost Flamebait..like saying 'Canada is part of the USA' IMHO

Without rehashing all the history, the modern reality is that the (current) Taiwanese population would not consider themselves part of the Chinese Socio-Political system any more than the Tibetans would.

Re:Wow (2, Funny)

TheDarAve (513675) | more than 4 years ago | (#31618066)

Well, that's almost Flamebait..like saying 'Canada is part of the USA' IMHO

Its not? O_O So that's why they started asking for a passport this year...

Re:Wow (1)

barberousse (1432239) | more than 4 years ago | (#31618196)

Slight correction: the United States started requiring a passport this year. Canada only did it in response to the US.

Re:Wow (3, Insightful)

rtfa-troll (1340807) | more than 4 years ago | (#31618154)

Wrong way round. It's like saying that "the USA is a rebel part of Canada". The only difference is that when you re-submit to Her Majesty's imperial rule your governance will actually improve.

(Scotty: engage asbestos shields; divert all power from the main engine)

Re:Wow (3, Informative)

TheDarAve (513675) | more than 4 years ago | (#31618040)

This is not true. Few of the chips are made in China. Circuit boards are likely to be made in Taiwan.

You may not realize this, but Taiwan is part of China.

You may not realize this, but Taiwan is NOT part of China. Taiwan follows the old government that existed prior to the "cultural revolution" that spawned the current Chinese Communist Party government.

Re:Wow (4, Informative)

Wyatt Earp (1029) | more than 4 years ago | (#31618042)

No, Taiwan isn't part of the People's Republic of China.

Re:Wow (1)

fliptout (9217) | more than 4 years ago | (#31618092)

He didn't forget- they are not one country.

Taiwan political status (5, Informative)

sjbe (173966) | more than 4 years ago | (#31618112)

You may not realize this, but Taiwan is part of China.

The truth of that statement depends very much on whom you ask [wikipedia.org] . As things stand Taiwan is de-facto an independent country. The People's Republic of China (mainland) maintain that Taiwan is a part of China, whereas the Republic of China (Taiwan) maintains that they are actually the legitimate government of China and that the PROC has no sovereign authority. However Taiwan has had to take great care to not antagonize the PROC due to the threat of invasion.

In other words, it's complicated.

Re:Taiwan political status (1, Flamebait)

BlueBoxSW.com (745855) | more than 4 years ago | (#31618282)

It's not complicated.

Taiwan is it's own country by all measures except that China still thinks it has a right to it.

No one outside China thinks Taiwan is part of China.

Try reading something other that Chinese source-free propaganda posted to Wikipedia.

Re:Wow (1)

Applekid (993327) | more than 4 years ago | (#31617950)

There's simply nowhere else that makes these things cheaply but China.

There are still fab houses, PCB construction & assembly, etc in the West.

Stuff can be made elsewhere - and is (1)

sjbe (173966) | more than 4 years ago | (#31618206)

There's simply nowhere else that makes these things but China.

Nowhere? As someone who has sourced items from numerous countries I can say with authority that you are quite mistaken. China is an excellent (if difficult) place to source things cheaply but it is hardly the only place to make things. There are places with cheaper labor (Vietnam), better engineering (Japan/Germany), comparable/better logistics (Singapore), and the list goes on. China is an important option but not even close to the only option.

Remember too that the US has a $2.7 TRILLION manufacturing sector. The US manufacturing sector is larger than the GDP of all but 5 other countries on earth. Lots of stuff is made here - just not the labor intensive stuff. The notion that manufacturing in the US is dead is laughably wrong.

Re:Wow (4, Insightful)

LWATCDR (28044) | more than 4 years ago | (#31617838)

Wouldn't it be even better if it was built in Twin Falls Idaho or Austin TX?

Re:Wow (0)

Anonymous Coward | more than 4 years ago | (#31617898)

or Tennessee where they have 2 facilities, pay a happy meal an hour and a higher turnover rate than the front line of a civil war battle

Re:Wow (1)

braytonak (1775916) | more than 4 years ago | (#31618064)

Wouldn't it be even better if it was built in Twin Falls Idaho or Austin TX?

No, because they wouldn't pay very well. American companies can't afford to pay the wages and benefits that Americans demand. That's why they have so many jobs in other countries where such expectations are lower. They also avoid different kinds of taxes and restrictions on what they can do and where.

Re:Wow (0)

Anonymous Coward | more than 4 years ago | (#31618240)

American companies can't afford to pay the wages and benefits that Americans demand.

They can, but they don't.

Wrong! (5, Informative)

WrongSizeGlass (838941) | more than 4 years ago | (#31617596)

Dell spokesperson denied the story this morning. Who's editing today, me?

Re:Wrong! (5, Informative)

WrongSizeGlass (838941) | more than 4 years ago | (#31617678)

Companies "deny" things all the time... (1)

thesandbender (911391) | more than 4 years ago | (#31617852)

For any number of reasons, especially when it comes to deals like this. Saying "Honey, I wasn't sleeping with her in our bed." doesn't mean you weren't cheating.

Re:Wrong! (3, Insightful)

BlueBoxSW.com (745855) | more than 4 years ago | (#31617888)

If I had 25 billion invested in china and was going to move it to India in phases, I would deny it, too.

Economic warfare (1, Insightful)

Citizen of Earth (569446) | more than 4 years ago | (#31617600)

If you declare war against the people who are trying to make you rich, you suffer the consequences.

Re:Economic warfare (0)

Anonymous Coward | more than 4 years ago | (#31617700)

That statement surely applies to both sides of this one.

Re:Economic warfare (1, Interesting)

Anonymous Coward | more than 4 years ago | (#31617704)

If you declare war against the people who are trying to make you rich, you suffer the consequences.
I'm really not sure whether you're referring to the Chinese or Dell

Re:Economic warfare (1)

santax (1541065) | more than 4 years ago | (#31617760)

I hope you understand who is on the receiving end of this one and who is making whom rich. China doesn't need anyone. But everyone needs China.

Re:Economic warfare (4, Insightful)

bsDaemon (87307) | more than 4 years ago | (#31617800)

We don't need China. It's just nice to have cheap stuff, and they make stuff cheap. If no one was buying, they couldn't sell. Its kind of like economic mutally-assured destruction. Despite what the Reaganites may want us to believe, demand still has just as much power as supply.

Re:Economic warfare (3, Insightful)

santax (1541065) | more than 4 years ago | (#31618034)

Do you have any understanding of the population of China? I think they will sell those good just fine without the USA, the EU or Africa for that matter.

Re:Economic warfare (2, Interesting)

bsDaemon (87307) | more than 4 years ago | (#31618110)

Yes, they can sell to themselves, which is a closed population, which has demographic policies which ensure that they're going to have more old people than anything else in the mid-term, and those old people aren't really going to be productive. The only way capitalism works is if it can keep growing, which means that they have to start expanding into new markets, if possible -- otherwise, the system chokes on itself. It doesn't work closed in, just the same as Communism -- it wouldn't really work in just one country. In the 19th century, this brought us imperialism. In the 20th century, it brought us two world wars, followed by the cold war. If the rest of the world just stopped buying China's crap and kept trading with each other, freezing them out, we'd do a whole lot better than they would.

Re:Economic warfare (1)

TheDarAve (513675) | more than 4 years ago | (#31618114)

Possibly, but without the foreign sales, unemployment there will put Michigan to shame.

Re:Economic warfare (2, Insightful)

dunezone (899268) | more than 4 years ago | (#31618250)

Do you have any understanding of the population of China? I think they will sell those good just fine without the USA, the EU or Africa for that matter.

No they wont. The high end products they produce cheaply cant be purchased by their own people because their own people don't have the wealth to pay for a high end good such as an iPod, tv, computer. This is why they have a ton of cyber cafes everywhere.

Also they might have a large population but a good portion of it is in the country where they live on farms and don't have a use for a high end product such as a TV or iPod because they don't have the infrastructure to support it.

The only reason China has been doing so well is because they cut corners everywhere. Cheap labor, cheap resources, disregard for implementing proper environmental laws, anywhere they could cut a corner they would. Compare a Chinese built automobile to a US / Japanese / European. The Chinese car will be extremely cheap compare to other countries but would disregard any safety or environmental standards.

Re:Economic warfare (0)

Anonymous Coward | more than 4 years ago | (#31618234)

China doesn't sell us anything, big giant corporations make/buy things in China and sell them to us, so they can have cheap, and possibly slave, labor, along with avoiding environmental laws here.

Re:Economic warfare (1)

Zephyr14z (907494) | more than 4 years ago | (#31618098)

Almost every single item i own and use was produced within 50 miles of where I live. We don't need china. Many people simply prefer to save a few dollars, even when the real cost(environmental impact, human rights abuses, etc.) may be higher.

Re:Economic warfare (3, Insightful)

Lord Ender (156273) | more than 4 years ago | (#31617776)

Who is declaring the metaphorical war against whom? Are you saying China declared war on the multi-national corporations by hacking them?

I think they're just recognizing that a communist government is a bad environment for a corporation, despite extremely low wages. China will enforce its laws only when they suit China. If you build something there, don't expect them to shut down factories producing knock-offs of your designs. And if the shit ever hits the fan, ALL your investments in China will become the sole property of China.

That was never an ideal business environment. China was an interesting experiment, but any big corp is wise to limit its ties to the ironically-named Peoples' Republic.

Re:Economic warfare (5, Insightful)

Minion of Eris (1574569) | more than 4 years ago | (#31618026)

When since the death of Mao and the rise of the "Gang of Seven" has anyone thought China was Communist? That is like calling the old Soviet Empire a Communist state. They are a totalitarian dictatorship. Just 'cause they call themselves commies, that doesn't mean they are. To quote I-don't-remember-who (maybe Hunter Thompson?) "Communism has not been tried and failed, Communism has not been tried."

Re:Economic warfare (1)

TheDarAve (513675) | more than 4 years ago | (#31618126)

Mao would have been Totalitarian, "Gang of Seven" is an Oligarchy.

Re:Economic warfare (2, Insightful)

HeckRuler (1369601) | more than 4 years ago | (#31618336)

Well what's communism then if not Soviet communism?

Intellectually, in the ivory tower, and in the history books, sure I know that Soviet Russia wasn't ideally communistic. It didn't adhere to communist ideals. But I didn't think that anyone agreed what those ideals were. Given that Soviet Russia is the primary example of communism, and that everyone associates the two together, I'd argue that here in the real world, they have defined what communism is.

If you want to take another stab at everyone chipping in for the common good, feel free, but get yourself a different name.

And companies aren't leaving China because the people have cast off their classist ideas about money and pay, it's because of the controlling and backstabbing government. Which is why it's fitting to call China a communist government.

Re:Economic warfare (1)

farble1670 (803356) | more than 4 years ago | (#31618058)

communism really has nothing to do with low wages or anything else you mention. in fact, communism is contrary to those things. china isn't anything close to communist, except in it's internally directed rhetoric.

Re:Economic warfare (1)

WidgetGuy (1233314) | more than 4 years ago | (#31618158)

Hear that, American corporations? Stick to doing business in only those countries where you can buy the government. Like, say, the U.S.

Re:Economic warfare (2, Insightful)

Arancaytar (966377) | more than 4 years ago | (#31618382)

To be more accurate, no corporation has ever tried to make anyone else rich. That the corporations boost the Chinese economy is a side effect they couldn't care less about; their aim is to produce something for the lowest cost possible and sell it for the highest price possible. China's ironically utterly capitalist approach to worker's rights and environmental protection means the cost is lowest there. That made it attractive to corporations.

But there are hidden costs from industrial espionage, arbitrary unpredictable actions by the government, poor safety guidelines (thus bad quality control) and the consumer backlash for exploiting lax pollution&employment laws. If these hidden costs grow too great, corporations will pack up and go elsewhere.

doublespeak (5, Insightful)

guyfawkes-11-5 (1583613) | more than 4 years ago | (#31617608)

a 'safer environment conductive to enterprise'
Read as "safer from industrial espionage and nationalization"

Re:doublespeak (4, Insightful)

MightyMartian (840721) | more than 4 years ago | (#31617672)

People had been predicting all of this for some time. Where can you manufacture cheaper and with less bureaucratic impediments than China? Why, India. Just wait, in ten years, Chinese firms will be outsourcing there.

The old adage Live by the sword, die by the sword seems to apply here.

Re:doublespeak (4, Insightful)

MonsterTrimble (1205334) | more than 4 years ago | (#31617916)

I'm just waiting for the day (in about 20 years) when Africa has become the new China and China has become like Britain - they know what they're doing, but it's too darn expensive.

Re:doublespeak (3, Informative)

bheer (633842) | more than 4 years ago | (#31618016)

> Just wait, in ten years, Chinese firms will be outsourcing there.

They already are [ft.com] planning to do so (warning: the FT restricts how many pages you can view, even if you register)

But it's not surprising. After all, pretty much all the Japanese auto manufacturers now actually produce in the US.

Re:doublespeak (1)

Bluesman (104513) | more than 4 years ago | (#31617896)

Conductive doesn't sound safe to me...

alias, no government spies and lies (-1, Flamebait)

swschrad (312009) | more than 4 years ago | (#31617658)

there is the little issue of China having electricity and India not, but apparently spies and lies count for more.

Reliable source? (0)

Anonymous Coward | more than 4 years ago | (#31617688)

Having a hard time finding one.

Yow! (1)

Un pobre guey (593801) | more than 4 years ago | (#31617694)

If this is true, it is a decison vastly more consequential than anything Google has done.

if its on slashdot its probably not true (0)

Anonymous Coward | more than 4 years ago | (#31617720)

yes we are the new generation of digital technology.

we dont know if we got the basic facts right, but damn, we had a lot of ad impressions

Re:Yow! (1)

Un pobre guey (593801) | more than 4 years ago | (#31617738)

It is apparently not true, however.

It's a lose lose (3, Insightful)

jollyreaper (513215) | more than 4 years ago | (#31617728)

So instead of American jobs being outsourced to one dirt-poor foreign country they'll be outsourced to another. Total significance to the American worker and the American customer -- nothing.

Re:It's a lose lose (0)

Anonymous Coward | more than 4 years ago | (#31617836)

Don't worry, someday America will be the dirt-poor foreign country that everyone else will be outsourcing their jobs to...

Re:It's a lose lose (5, Interesting)

Seor Jojoba (519752) | more than 4 years ago | (#31617860)

India is a democracy with a much better record of treating its citizens as free human beings. It also doesn't seem to have the taste for global imperialism that China does. In China, you can disappear for protesting on the street. In China, you put in an application if you'd like to move to another city. In China, the internet is filtered. India should be a great friend of the United States. Americans have a lot in common with them, and in that part of the world, America could use more friends.

Re:It's a lose lose (1, Informative)

rubycodez (864176) | more than 4 years ago | (#31618078)

those of the lower castes in India would disagree with you, where many are beaten, murdered, systematically denied legal representation, denied justice by government, given jobs in inhumane working conditions, denied educational opportunity.....

We in the USA should not be taking advantage of the lower prices afforded by a country that practices such things, it is evil.

Re:It's a lose lose (2, Informative)

shutdown -p now (807394) | more than 4 years ago | (#31618182)

The big difference is that in India, it is a problem of the society as a whole, and the government 1) recognizes it as a problem, and 2) tries to combat it. In China, political oppression is an official government policy.

Re:It's a lose lose (0, Troll)

Threni (635302) | more than 4 years ago | (#31618376)

The lower castes (classes, whatever) in the US/UK etc have much the same to say.

Re:It's a lose lose (0)

Anonymous Coward | more than 4 years ago | (#31618166)

You don't need an application to move to another city, learn what you're talking about dicksucker.

Re:It's a lose lose (0)

Anonymous Coward | more than 4 years ago | (#31618286)

India is a democracy with a much better record of treating its citizens as free human beings.

ha aha ha ha ha haaaaa haaaa hhaahaha ahhaa haaa.

I'm sorry, you were dreaming? oops, saying?

Re:It's a lose lose (1)

_Shad0w_ (127912) | more than 4 years ago | (#31617892)

You know, Dell trades in countries besides the US. No matter where they manufacture the damn things they're probably going to be shipping them abroad to a large proportion of their customers anyway.

I suspect it's only the base systems that are manufactured over there anyway, final configuration still takes place at the local level, I believe. At least I can't see Dell building a system to my spec in India or China and then shipping it over to me in the UK.

Re:It's a lose lose (1)

acnicklas (1740146) | more than 4 years ago | (#31618022)

I ordered a new ThinkPad a couple of months back - Lenovo actually built it to my specs in China then DHL'd it to me in NY.

Re:It's a lose lose (1)

beef curtains (792692) | more than 4 years ago | (#31618168)

Same thing with my Macbook Pro and my wife's Macbook. According to the shipping labels & package tracking, they came directly from China (both from Guangzhou, if I recall correctly), customizations & all. Mine even took a while, as it was held up in customs in Memphis.

Re:It's a lose lose (0)

Anonymous Coward | more than 4 years ago | (#31617984)

Wrong. Current chips coming from China have hardware backdoors in them - of a truth. No lie.

To be honest, a lot manufacturing places have chips with backdoors in them.

Re:It's a lose lose {{citation needed}} (1)

rtfa-troll (1340807) | more than 4 years ago | (#31618248)

{{citation needed}}

Re:It's a lose lose (1)

ed.han (444783) | more than 4 years ago | (#31618086)

because the plight of the american worker is the only metric by which one should evaluate anything?

The funny thing is (0)

Anonymous Coward | more than 4 years ago | (#31617732)

that China has already stolen all that they can. Now Dell is going to send it to India. If Dell was smart, they would at least split the work between America and India.

Re:The funny thing is (1)

dfgchgfxrjtdhgh.jjhv (951946) | more than 4 years ago | (#31618176)

Aren't they allowed to use your prison slave labour system, like other US manufacturers?

Ahh, yes (0, Offtopic)

wampus (1932) | more than 4 years ago | (#31617740)

Nexus404, known far and wide as a...?

Didn't they already do this? (5, Funny)

Khan (19367) | more than 4 years ago | (#31617762)

Oh wait, that was their Customer Service department. I wonder how that experiment went ;-)

Conductive? (4, Funny)

ShadowRangerRIT (1301549) | more than 4 years ago | (#31617786)

Sure that wasn't "conducive"? I know Dell is an electronics manufacturer, but the company itself is likely non-conductive in the first place.

Re:Conductive? (1)

Sponge Bath (413667) | more than 4 years ago | (#31617932)

The only way to know for sure is to test with Michael Dell, a diesel generator, and some industrial sized electrodes.

Re:Conductive? (3, Insightful)

TheDarAve (513675) | more than 4 years ago | (#31618134)

Thomas Edison, is that you?

Re:Conductive? (1)

ShadowRangerRIT (1301549) | more than 4 years ago | (#31618100)

Just a note: TFA actually uses the correct word. Is it so hard for submitters to actually copy and paste the correct words when they are directly quoting in the first place?

I would like them move to US (1)

CSHARP123 (904951) | more than 4 years ago | (#31617808)

I know they would not do that citing cost and other crap. But I certainly would support any company moving production base from communist country to a democratic country. I know there are people here criticizing US, India and other democratic countries about certain draconian laws but these countries are much better than China.

Why not Libya? (-1, Flamebait)

Drunkulus (920976) | more than 4 years ago | (#31617900)

Dell are traitors to their own country whether moving to China or India.

Re:Why not Libya? (0)

Anonymous Coward | more than 4 years ago | (#31618224)

If Dell were to move to the middle-east they would move to Israel, not to an Arabic country.

You should already know why.

pandemic? (2, Interesting)

bl8n8r (649187) | more than 4 years ago | (#31617906)

Wonder how many more US companies are going to pull out of China. First google, then godaddy, now Dell. What happens when all that China has left, is China?

Re:pandemic? (0)

Anonymous Coward | more than 4 years ago | (#31617994)

When Lenovo moves out, then China needs to worry.

Dell was going to move out anyway. They're just jumping on the bandwagon for cheap PR points - assuming the story is true.

Re:pandemic? (1)

RobVB (1566105) | more than 4 years ago | (#31618120)

What happens when all that China has left, is China?

Then they'll have North Korea.

Re:pandemic? (1)

TheDarAve (513675) | more than 4 years ago | (#31618284)

Farmers with no electricity? I don't see this as being a target audience for China. Ever. Besides, Kim Jong-Il prefers to keep the populace dumb and unsophisticated to prevent them from realizing that they really don't have it better than the rest of the world. The country only has a 99% literacy rate because its easier to disseminate your propaganda via leaflets. Cultural indoctrination starts in Kindergarten and expands to half the curriculum by high school.

Re:pandemic? (0)

Anonymous Coward | more than 4 years ago | (#31618136)

NO NO NO

FFS Dell is not leaving China.

How can people believe this shit without reading into it? Seems like any breaking news could just set people off...

Re:pandemic? (1)

farble1670 (803356) | more than 4 years ago | (#31618162)

never happen. china has an infinite supply of workers ready to grind themselves into the ground to put $ on the pockets of execs back in the US. that's just too sweet a deal for US corporations to pass up.

google and friends are pulling out for no other reason than it's costing them more to do business there than they are saving. don't kid yourself into thinking that they took some sort of moral high ground.

Re:pandemic? (2, Informative)

Shajenko42 (627901) | more than 4 years ago | (#31618276)

Yes, but China has shown that it is quite willing to make a deal and break it, stealing whatever they can from companies that move there and giving it to their local competitors. That changes the dynamics a bit.

Re:pandemic? (0)

Anonymous Coward | more than 4 years ago | (#31618184)

They'll have their thriving lead paint and melamine industries.

Re:pandemic? (4, Informative)

smellsofbikes (890263) | more than 4 years ago | (#31618370)

>Wonder how many more US companies are going to pull out of China. First google, then godaddy, now Dell. What happens when all that China has left, is China?

My company did. We abandoned a brand-new billion dollar semiconductor fabrication facility. Officially it was because we didn't have enough work to fill it along with our several other (non-Chinese) fabs. Rumor says it was at least partly because we were tired of competing with ourselves and our fourth-shift output. However, it certainly wasn't anything to do with fear of nationalization or the unpleasantness surrounding that Australian Rio Tinto executive who was arrested and is currently being tried in China [speroforum.com] for (again, rumor has it) not bribing enough people, although I think that should be at least considered. Since the Rio Tinto trial was front-page Wall Street Journal news yesterday, I'm guessing that today a lot of people who make outsourcing decisions are thinking about it.

Sell dell now! (0)

Anonymous Coward | more than 4 years ago | (#31617920)

25 billion move? Shorting dell stocks immediately. Someone have to go to jail if this is not true.

India safer? Define safer. (5, Interesting)

Anonymous Coward | more than 4 years ago | (#31618010)

India safer? In some ways I suppose but it depends on what you are talking about. The Indian government is less draconian and less likely to try to compete with you. Expropriation [wikipedia.org] is probably less of a concern in India. The rupee has somewhat better convertibility [wikipedia.org] than the yuan and currency flows are less stringently controlled. Plus there is a much larger contingent of English speakers than in China. India's legal system is slightly less hostile to foreigners than China's though both are to be avoided if possible. Freedom of speech is obviously better in India though China doesn't have quite the death grip on speech everyone here seems to think they do.

On the other hand, India's infrastructure is badly trailing that of China, there is less foreign capital to improve things, corruption is a huge issue in India, business regulations are as bad if not worse than China, and transport costs are somewhat worse. Despite the number of engineers, India has less experience with certain types of manufacturing. India is a democracy (which is good) but that doesn't always make doing business there easier - in fact it often makes it harder due to populist policies.

There has been something of a "gotta be in China" attitude but China isn't always the best place to make things. There are places with cheaper labor (Vietnam for instance) and places with better logistics (Singapore) and places with expertise silos (Japan) that might make better choices. Plus betting everything on China is risky by itself. Doing business in China is hard, risky, requires constant oversight, and a long term perspective. Anyone thinking they can just produce stuff cheaply in China with little difficulty is going to lose a lot of money very quickly.

I've done global sourcing in both countries - it's difficult no matter which way you go. I've personally been in a factory in Chengdu where parts for Dell computers were being assembled. Moving production from China to India might be a good idea from a diversification standpoint (bad idea to do everything in China) but it's only marginally safer in my opinion depending on exactly what one means by safer.

Re:India safer? Define safer. (1)

beef curtains (792692) | more than 4 years ago | (#31618216)

You should have signed in before submitting this comment...it's worthy of some +1 mods, in my opinion.

Sadly just wishful thinking I'm affraid! (0)

Anonymous Coward | more than 4 years ago | (#31618018)

Or some form of self promotion for the author? I have a post on Slashdot: touch me now...

India is not known for its workmanship.... (0, Troll)

madhatter256 (443326) | more than 4 years ago | (#31618062)

Look at how bad the call service for their tech-support is.... what's to say that hardware manufacturing will be any better?

The domestic market for Indian cars is very small and many of the big corporations there import many of their equipment.

Remember that you should stay away from writable dvd/cd media made in India....

Also, India has sweatshops, too, hundreds of them and a lax government crackdown on them....

Re:India is not known for its workmanship.... (1)

Jeng (926980) | more than 4 years ago | (#31618292)

All it takes is some plugging of cords and tighten a couple screws then toss it into the burn rack.

Building a computer isn't exactly rocket science, its closer to putting together a snap together model.

Re:India is not known for its workmanship.... (1)

Xveers (1003463) | more than 4 years ago | (#31618306)

And what, twenty years ago you could say the same thing about China, probably even moreso. India has massive problems, yes. But they are problems that can be addressed, even better, dealt with in a manner far more farmilliar to western firms than in China. Twenty years ago, Chinese goods were invariably described as crap. Nowadays, the description varies from "meh, it's alright" to "they made that in China?". It all depends on which company is doing the manufacturing and how closely they watch their suppliers.

As for sweatshops, a large reason you've seen them dissapear to an extent in China and other countries is not government crackdowns (any country that has large amounts of sweatshops is invariably one that will not do more than token raids and legal pressure) but from the companies employing said labor because the public outcry about using said labor can be business-killing.

Give India the same capital and time that China got, and I'm certian that we'll see the at the least the same selection of quality. But with far more positive social benefits for India.

China ain't going to be happy (1)

gamecrusader (1684024) | more than 4 years ago | (#31618072)

wonder if this would drive them to go to war just wondering, after all the U.S. coperations are moving alot of their assests out of China, and China isn't going to be as powerful as it use to be, it would tick of many because of this.

Re:China ain't going to be happy (0)

Anonymous Coward | more than 4 years ago | (#31618244)

No.

How can I help you today? (5, Funny)

hoggoth (414195) | more than 4 years ago | (#31618178)

It is my pleasure to be helping you today. I understand you are trying to move your factories from China to India. Just a moment and I will bring up your account. Ok I will look up moving your factories from China to India in our knowledge-base. Have you tried plugging in your factories?

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