IF COST was the only consideration global businesses would outsource all their work to low-cost Asian economies, according to IBM chief executive Sam Palmisano.
"Now if [cost] was the only factor you would conclude that all work is going to flow from east to west, because clearly that's where the comparative advantage from a cost perspective is," said Palmisano. "But then it doesn't happen that way, does it?"
Speaking at an IBM-sponsored conference in London last week Palmisano discussed how companies and countries can thrive in the new hyper-connected economy.
"When the world is connected, work flows where it can best be done," said Palmisano. "It's like water; it will seek its own level."
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