Many people will quickly assume that there is little detail to an offshore outsourcing strategy. They believe that any company that partakes in offshoring is using the same offshore outsourcing strategy. The assumed offshore outsourcing strategy is basically to cut production costs by setting up operations in a place of the world labor and/or resources are less expensive. While this is true of the basic offshore outsourcing strategy, there are far more details to it that many people often neglect. There is not nearly enough space here to go through a full offshore outsourcing strategy, but I will try to discuss some of the key features. This is certainly not a complete outline for an offshore outsourcing strategy, but I would consider a good starting point for anyone considering moving operations offshore.
In addition to the basic principle of an offshore outsourcing strategy that was discussed above, it is important to consider you shipping strategy, media strategy, and scaling strategy. Since your offshore operations are likely in a distant country, your offshore outsourcing strategy must include a cost effective means of shipping all your products to their final destination. There is no point in cheap manufacturing if it is negated by high shipping costs. Next, there is often a negative public reaction to offshoring. Therefore, your offshore outsourcing strategy should include a media plan to minimize the bad press. Finally, assuming the other areas of your offshore outsourcing strategy are sound, you will likely one day want to scale your offshore operations. When you first set up your offshore operations, you should consider that one day you may want to expand and plan accordingly. In addition to these areas, there are surely going to be many more things to include in your offshore outsourcing strategy.
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