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| Author: | Dawis, E.W. |
| Title: | Global outsourcing: Have U.S. managers thrown the baby out with the bath water? |
| Journal: | Business Horizons
1992 : JUL-AUG, VOL. 35:4, p.58-65 |
| Index terms: | CAR INDUSTRY USA CONTRACTS SUPPLY MAKE OR BUY DECISIONS STRATEGIC MANAGEMENT |
| Language: | eng |
| Abstract: | In the automotive industry, a greater degree of outsourcing is applied at Japanese automotive companies compared to the "Big Three" USA companies, versus in-house manufacturing. However, in the USA, an increased dependence on outside suppliers in the 1980s helped a trend toward increased integration. Some exact figures of this trend are shown and the reasons are searched for. The cost factors of outsourcing or offshore sourcing are discussed, and their management strategies are proposed. Outsourcing can undermine competitiveness in many cases, mainly due to the fact that the true costs of offshore sourcing are rarely determined. |
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