Offshore outsourcing

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. 

Greco, J. (2007). Outsourcing offshore to China - A case study, http //www.articlesbase.com/ business-articles/outsoijrcing-offshOTe-to-china-a-case-study-189080.html... 

Brand Brand (company) Export Outsourced Offshore... 

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. ... 

Operations strategy refers to the decisions on how the company will produce its goods and services. Examples of decisions are which production strategy will be used (e.g., make to stock, make to order or some combination), what is the best balance between in source and outsource, will the company pursue a low cost offshore manufacturing strategy, just to enumerate some examples. 

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. 

Our personal financial security may depend on how well our employers and our employers supply chain partners manage in the global economy. Many industries will prosper from added jobs if their own countries become the destination for offshoring or outsourcing from other countries. Other industries will founder as competition from abroad moves into their markets. 

A concept called complementarity holds that the outsourcing and offshoring creates complementary requirements in the U.S. company that expand the scale and the scope of the U.S. enterprise. Scale refers to growth in the functions performed in the company due to its larger size. Scope refers to the mix of activities done in the home country, with a focus on higher skilled activities that displace the low-cost activities that are transferred elsewhere. So the home country concentrates on high value coordination and marketing while the supplier nation concentrates on lower value physical production. 

Factory-direct labor Labor that "touches" the product Usually has assigned work measurement standards Lower cost labor this is often the motivator for outsourcing or offshoring... 

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