Outsourcing too expensive
A new study by the Boston Consulting Group finds that outsourcing to China and India did little or nothing to save costs for many of the original equipment manufacturers (OEMs).
About two-thirds of the manufacturers in the survey reported unit costs in China equal to or higher than those in their home countries. The authors point to diseconomies of scale and higher quality control costs as main causes.
Comments (1)
Bookmark
E-mail
Facebook
Not all outsourcing companies are expensive. There are outsourcing companies which offer low labor cost yet deliver competitively. There are even some who are very transparent with the pricing, wherein manufacturers can plan well in advance their budget.
Posted by: Outsourcing Guru | Jan 23, 2009 2:09:54 AM