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.


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3 comments:

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.

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