Outsourcing Blindly

Filed in archive Best Practice on May 23, 2007

Most companies expect a one-time payment for their outsourcing deals and expecting it to deliver miracles for their companies.

This should not be the case in outsourcing. In fact, George Stalk Jr., the author of the report entitled Surviving the China riptide: How to profit from the supply chain bottleneck pointed that companies doing this are walking into a "strategic trap".

The trap was explained as "thinking that sourcing from China will result in lower product costs, when in reality the supply chain dynamics will, in many cases, drive up overall costs and reduce profitability."

Now that you have learned about this trap, I suggest that you change your attitude and make sure that you have the right approach in outsourcing.