Low Cost Country Sourcing: Michigan Style

No doubt labor costs played a role in Google's decision to locate a new facility in Michigan, rather than California. I reckon the cost per highly-educated FTE to be at least 25-30% less in the college town compared with Silicon Valley. While not offering comparable wages to India -- which are probably 75-80% less than California for comparable positions -- the Ann Arbor region will offer lower employee turnover than India, greater productivity, and an outstanding, stable talent base to recruit from.

Jason Busch

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