Advantages Of Offshore Product Development

Outsourcing is a method used by many corporations in which their products are manufactured in foreign countries often for cheaper labor.This method method of productions has it’s pros and cons.

The IT Service industry has expanded rapidly. Many companies worldwide have made the decision to outsource this industry to offshore companies. Worldwide demand has increased growth to 40 to 50 percent on an annual compounded rate basis. Many developing nations like Latin America and Asia have made an attempt to obtain some of the IT offshoring business from countries like the United States because it is seen as not only a source for

The top opportunity identified after completing the T-Box Organizational Productivity for Bridgestone Americas, Inc. is offshore outsourcing. This opportunity would provide alternative options for resources that will lower costs. As a project manager for the IT Project Management Office, we are given budgets for each project that have to be closely monitored. Normally, an offshore resource per hourly rate is lower than a company employee or domestic companies. The lower hourly rate would allow more hours to be worked on the project resulting in increased quality of application or product. In addition, customer satisfaction is achieved while delivering projects under budget. According to Gupta (2009), “offshore outsourcing can lead

With a large English-speaking population, American companies do not have to worry about any barrier language barriers with regards training and negotiation. In addition, India also has a large population of unskilled workers who can work either manufacturing, or the call centers. Perhaps the most important benefit of outsourcing to India is its lack of regulation which allows companies to compensate workers far below the value of the work they are doing. Because of these reasons, essentially any company which requires call centers and manufacturing bases see India as a viable

As more companies expand their business globally, they are seeing more opportunities and an increased set of threats to the market. Threats like war, political revolutions, new currencies, and natural disasters can affect growth and political stability throughout the world, so in order to successfully compete in the international market more companies are faced with the decision of relocating part of their operation offshore. This paper will address what key elements companies in this situation need to address, such as, quality of customer service provided, security of confidential information, and the possibilities of cost savings, in order to be sure that outsourcing is the best solution for their company.

Though outsourcing offers many potential benefits for product development as it may be used to speed up processes and reduce staffing costs; these benefits are speculated and not always certain. As a result, organizations must not overlook the possibilities of failure due to outsourcing. Because of the inherent nature of outsourcing, vital jobs are extremely distant from central headquarters, and control is essentially being shared and sometimes completely transferred to a third party (Rozet, 2009). Some innovation risks associated with outsourcing product development include loss of confidentiality, possible losses of technological core competencies, loss of managerial control, loss of control of outsourced activities, and hidden costs

Suppliers located overseas can be a very controversial topic, not only in today’s procurement and supply management field but also throughout the country in general. There are defiantly some advantages to suppliers located overseas but there are also disadvantages that can outweigh the advantages in some

This paper bases its arguments on the benefits and some dangers associated with offshoring mostly in the IT sector in the U.S companies (Goloboy et. Al 209). It also explores the factors leading to offshoring of IT jobs to developing countries. A rough estimate of the jobs to be affected by offshore outsourcing and finally the state and civic legislation concerning this exercise (Goloboy et. Al 209).

QN: Identify the skills needed for successful New Product Development and where they will be found within or outside the organisation, with consideration to the roles of the team members.

Development of specific skills: Out sourcing benefits the development of specific skills at a corporation level the same way off shoring does at a global level. Companies outsource in order to take advantage of specialized skills and knowledge that itself does not own or that can’t be efficiently acquired. In this case out sourcing leads to higher efficiency and better quality provided by third parties for a specific business processes. Moreover the third parties can further specialize to take advantage of the resulting economies of scale and mitigate the possible shortage of specific skilled and talented workers.

This paper will discuss the generic product development process. The product development process represents the basic sequence of steps or activities that a firm employs to conceive, design, and bring a product to market (Jacobs & Chase, 2011). The process consists of six phases. Many of the phases involve intellectual activities rather than physical activities. Many firms use the generic product development process but others have more defined and precise process geared towards their functions and products.

This paper addresses the processes and rationale for vendor selection in global sourcing. Many businesses are not equipped to handle all functions of the business. Apple computer is a successful industry leader in mobile communications and devices, and computers. Their success is contributed to the strategies for focusing on core competencies and innovation, and partnering with vendors to foster a competitive advantage. This paper provides an insight on the methodology used for the organization in selecting vendors, contracting process and the country risk assessment.

This study will expand the existing literature of offshore manufacturing outsourcing, and focus on the offshoring activities from Bangladesh.

Product Development – The company markets new products to existing customers. Here the company should be innovative, responsive, and truly in touch with their customer’s ever changing wants and needs.

Many a times, an organisation has efficient and effective skill sets which meets up the standards of international trade and hence going global gives an edge, subsidies, profits to such businesses. These days most of the organisations based in emerging economies are adopting the industrial globalisation for the sole reason of scope and growth. Like most of the MNCs prefer to outsource the IT and software business to countries like India because of multiple and lucrative offers brought to platter like low cost services and high-quality work with an edge on English language.