A closer look at manufacturing outsourcing

The various aspects that need to be considered before adopting manufacturing outsourcing are outlined. Companies that view manufacturing as their core competency are less likely to embrace outsourcing when compared to companies whose competitive advantage lies in marketing or design. Outsourcing is also easier when the product is not very complex. Other considerations that need to be analyzed before going for outsourcing include alignment of outsourcing with business strategy, technological capabilities, financial considerations, and various cultural and political factors.