Outsourcing

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Is It Time to Rethink Your Manufacturing Strategy?

Since the mid-1990s, many companies have outsourced or offshored their manufacturing operations. For most, one crucial enabling factor was cheap oil: Long supply lines were economically feasible because transportation costs were relatively low. Hence, companies emphasized reducing manufacturing costs through (1) offshoring or outsourcing; (2) plant rationalization; and (3) consolidating distribution centers and warehouses to reduce inventory levels and minimize fixed facility costs.

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Free Article

Debating Offshoring’s Impact

  • Blog
  • Read Time: 1 min 

Too often, discussions of contemporary economic issues end up either overly simplified for popular consumption -- or too jargony and technical to be followed by anyone but economists. A new book, Offshoring of American Jobs: What Response from U.S.

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Offshoring Without Guilt

The increasingly common practice of migrating business processes overseas to locales such as India, the Philippines and China is often seen as a negative phenomenon that suppresses domestic job markets. On the contrary, says the author, offshoring is a critical component of next-generation business design, a dynamic process of continually identifying how to deliver superior value to customers and shareholders.

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Transformational Outsourcing

Outsourcing can be more than a tool for cutting costs and improving organizational focus. Increasingly, it is a means of acquiring new capabilities and bringing about fundamental strategic and structural change.

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Leading Laterally in Company Outsourcing

As service and product outsourcing become more commonplace, new organizational forms are emerging to facilitate these relationships. Chase Bank has created “shared services” units that compete with outside vendors to furnish services to the bank’s own operating units.

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