Labor Cost Analysis: Consequences of Experience and Vertical on Labor Cost

The objective of the paper is to look at low cost destinations in India and China and understand the viability of
executing long term sourcing strategy in these locations. Zinnov considered 4 key functions i.e. Business Process
Outsouring (BPO), Engineering (Including Software and Hardware R&D), Information technology (IT) and Manufacturing. Zinnov categorized the experience level of talent across these functions in four broad categories of 0- 3, 3 – 7, 7- 10 & 10+ Years.

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