Report: Send it offshore, ASAP

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Fools

Any consulting group that looks solely at the bottom line of salaries when making suggestions about offshoring is a bunch of fools sucked in by the smoke and mirrors of the offshore companies' sales and marketing teams.
I understand the marketing pressures to go offshore. Every company wants to increase their profit margin, or just stay competitive, and, as consumers, we all like paying less for products.
The biggest problem with offshoring is that the quality of goods and services inevitably goes down. At what point is the company willing to risk customer dissatisfaction over quality for goods and support over saving a few bucks? Dell has already tried a call center in India, and then pulled it back to th U.S. I work for a company that has been actively pursuing foreign production for years, and have had a lot of trouble getting the quality they want and still save money. [so far, I still have a job, so it is easier for me to be more philosophical about it].
Frankly, from what I have seen, only commodity level production is suitable for offshoring and then only if there is good oversight to make sure the product quality stays high. For this consulting group to suggest that R&D would be better off elsewhere is pure foolishness. They generally do not have the educational base to support quality R&D [even if a bunch of foreigners have been here on H1-B visas] and their innovations would tend to be low quality and/or dangerous.
Why would this consulting group think that R&D efforts would fare better than manufacturing efforts?

Posted by: seriously   Posted on: 06/16/04 You are currently: a Guest | Members login | Terms of Use

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