Outsourcing China

Outsourcing to reliable RCs in underdeveloped nations (e.g., India and China) provides enormous benefits to these nations, greatly enhancing their economies and stimulating the educational process needed to develop national culture—not only to... 

Globalization in the modem era has led to worldwide outsourcing. Two chapters were dedicated to the changes in the pharmaceutical industry in terms of outsourcing. In Chapter 28, Lu and Shinkai (Beta Chem, Japan), formerly from Merck, discuss the trends. Robins and Hannon (Davos), in Chapter 29, outline the importance of sourcing pharmaceutical products to China and India. 

So why is it that few pharmaceutical companies have aggressively outsourced to China given its attractively low-cost and fast-turnaround positioning ... 

Biotech and pharma companies outsource a number of different functions. In the discovery phase, the syntheses of building blocks, intermediates, and especially libraries are frequently outsourced, often to India or Eastern Europe. Offshoring of chemistry is frequent, that of biology less so. But ADME Absorption, Distribution, Metabolism, and Excretion) studies and animal models for preclinical development are now sometimes done in China, for example, at Shanghai s WuXi Pharmatech, whose customers currently include nearly all of big pharma and big biotech. ... 

Gereffi, G., Wadhwa, V, 2005. Framing the Engineering Outsourcing Debate Placing the United States on a Level Playing Field with China and India , Duke University Report,... 

Privatization occurs when a company moves a business from the public sector to the private sector. The privatized business must stand on its own with less or no government support. Privatization promotes globalization because acquirers of privatized businesses frequently roll up former state-owned enterprises under a multinational umbrella. Also, privatized companies have fewer restrictions that require them to keep operations inside a country. So they can offshore or outsource more freely. This is ambiguous in places like China, where private companies have majority government ownership. 

The nine leading brands for laptops outsource considerable amounts of their requirements to Quanta and its competitors. For the base product, the range is half or less for Toshiba, IBM, and Sony, and over 90 percent for HP, Acer, Gateway, Apple, and Dell. The article notes that much of this work was formerly done in home countries before competition made migration to China a necessity. The article also notes that IBM s decision to hang on to its own production had caused losses in the business that forced its sale to China s Lenova Group. Lenova, in turn, relies on contract manufacturers. 

Re nnond E. China lives up to outsourcing hype. In-Pharma... 

The EU chemical industiy looks to China as the principal future market for its products, seeing that its dramatic growth will require imports to supplement domestic production for many years to come. Western European countries are finding that their domestic demand for chemicals has steadily slowed, influenced by the lack of population growth this puts emphasis on export and outsourcing to sustain the existing European-based chemical industiy. 

Li Y., Liu Y, LiM., Wu H., 2008, Transformational Offshore Outsourcing Empirical Evidence from Alliances in China, Journal of Operational Management, 26(2), pp. 257-274. 

Olson D. L., Wu D., 2011, Risk Management Models for Supply Chain A Scenario Analysis of Outsourcing to China, Supply Chain Management An International Journal, 16(6), pp. 401 08. 

Sinha P., Akoorie M., Ding Q., Wu Q., 2011, What Motivates Manufacturing SMEs to Outsource Offshore in China Comparing the Perspectives of SME Manufacturers and Their Suppliers, Strategic Outsourcing An International Journal, 4(1), pp. 67-88. 

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