Friday, 14 December 2007

Outsourcing to China: A Business Perspective

A decent commentary on the issues that go beyond "cheap labour" when a firm decides to outsource.

The post concludes:

Is Sourcing in China Safe? [China Business Success Stories]

Whether you source domestically or offshore, always perform due diligence. It is naive to assume that every supplier in the world interprets quality standards the same way; that every country, company and person handles disputes the same way; or that quality can be considered a given. It is also naïve to assume that, just because it is in the U.S., a domestic source will meet your quality standards.

The savings from low wages can pale in comparison to the costs of a recall. The loss of customer trust can knock a company out completely. Those statements are true regardless of whether you source domestically, in China or anywhere else in the world.



Anonymous said...

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Philippine Outsourcing said...

Very interesting perspective about this issue. AS long as you know your people and you trust them that they will be doing the best for a certain service, then believe, but if not then don't. We know for sure that business is a risky one.

M.Shawn said...

My experince says it is difficult to compare the number of resources required at outsource place. I have earlier seen same job done by 2 people is easily handled by 1 and vice versa. It totally depends on quality and talent of people. As both countries have lot of population and good educational system. It is easy to find suitable people.

outsourcing china