The price comparative advantages from manufacturing in Asia and Mexico steadily deteriorated, U.S. businesses are reassessing the alternative of national outsourcing to stay internationally competitive.
The challenge in evaluating international versus domestic outsourcing tactical options lies in that first-movers are incredibly and purposefully vague about how they reach their conclusions. The aim of the article will be to reveal these reasons by providing statistical and firm-established signs on five major factors that are affecting the choice regarding where U.S. businesses should make to optimize their gross profits.
The variables comprise (1) increasingly competitive U.S. labour costs; (2) raising productivity of the U.S. workforce; (3) increasingly competitive national production costs; (4) incentives from federal, state, and local authorities; and (5) improved synchronization of production with other business functions.
Publication Date: January 15, 2014 Product #: BH580-PDF-ENG
This is just an excerpt. This case is about Leadership & Managing People
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