In Defense of Responsible Offshoring and Outsourcing

Harvard Business Review

Yet, the imperatives of offshore facilities and employees are — and will remain — central to American companies' international competitiveness. employees can be 25 percent or greater of total workforce; its supply chain of third parties is vital. Offshoring and outsourcing today are like sex in the Victorian era: repressed or criticized in public discussion, much practiced in private behavior. Let's get real — and back to basics.

What's Next When Offshoring Isn't so Cheap?

Harvard Business Review

Over the last decade, offshore manufacturing seemed like a no-brainer. dollar, rising fuel costs and the risks inherent in longer supply chains have many companies rethinking their sourcing strategies. Offshoring isn't going away, but companies will have to be smarter about it. or European companies have the same degree of insight into offshore markets.


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Morning Advantage: What's Known (So Far) About The Offshore Havens Leak

Harvard Business Review

million documents detailing the identities and activities of 120,000 offshore tax havens. A TALE OF TWO SUPPLY CHAINS. It’s being billed as possibly the “largest journalism collaboration in history.” For the past 15 months, nearly 100 reporters from media outlets around the world, working in collaboration with the International Center for Investigative Journalists (ICIJ), have analyzed about 2.5

How Western Multinationals Are Responding to the Escalating U.S.-China Trade War

Harvard Business

technology companies — that use China as a source of assembly, semi-manufactures or components have an additional vulnerability: their value chain. For every such company, especially those critically reliant on Chinese sub-contractors, their value chain is now actively at increased political risk. There are many ways to apply informal pressure along the value chain from delaying delivery to the easing of quality standards. Yuji Sakai/Getty Images.

NGO 28

Oil’s Boom-and-Bust Cycle May Be Over. Here’s Why

Harvard Business

oil supply may be enough on its own to meet all of this year’s growth in global oil demand. While they can start to tap into the global reserves of shale oil, which exist literally everywhere, developing the reserves in most places from China to Argentina will require a significant investment to develop the shale ecosystem and supply chains needed, in addition to the infrastructure to gather, treat, transport, and store the crude oil. hbr staff/bettmann/Getty Images.

The Downside of Best Practices | N2Growth Blog

N2Growth Blog

Moreover if they decide to develop the application should this be done internally with existing staff, or outsourced, and if outsourced will it be done domestically or offshore and who will manage the process. As one example; if you are a manufacturing organization, innovation in your core could include new and improved materials, new techniques, novel approaches to supply chain management etc.

Blog 243

An Agenda for the Future of Global Business

Harvard Business

While the last wave of globalization centered on accessing foreign markets and creating low-cost global supply chains, the next wave could follow a very different pattern. Business leaders can take an active role in shaping the next phase of globalization by looking beyond cost-based offshoring and emphasizing the benefits of trade and technology across a wider geographic and demographic base.

A Business Model for Bangladesh

Harvard Business Review

The death of over 800 people in the collapse of Rana Plaza , a building with garment factories in Bangladesh, spurred widespread outrage over working conditions in offshore factories. The true solution, we think, lies in understanding the changed nature of modern supply chains and identifying new business models better suited for managing them. What holds back improvements is thus not direct cost concerns, but the ability to ensure compliance with norms in a supply chain.

Just How Important Is Manufacturing?

Harvard Business Review

Making parts for an iPhone is a challenging mix of materials science, mechanical engineering, precision fabrication, and managing mind-boggling complexity in the supply chain. This is why I cringe when I see pharmaceutical makers shipping more and more of their production and development capability offshore, or when I see semiconductor tool makers move their manufacturing from the U.S.

The 4 Types of Small Businesses, and Why Each One Matters

Harvard Business Review

An important but less well-documented type is comprised of an estimated 1 million small businesses that are part of commercial and government supply chains (referred to as suppliers). from offshore. As Harvard Business School’s Michael Porter and Jan Rivkin have noted, strong supply chains bring “low logistical costs, rapid problem solving and easier joint innovation.” America loves small businesses.

Capitalism’s Future Is Already Here

Harvard Business Review

It hurried along the formation of global supply chains with ever greater efficiency and economies of scale. Shredded vertical supply chains. Spawned vast new horizontal value chains, in which millions of people began creating their own virtual meeting places and marketplaces with their own lateral economies of scale.

Unglamorous Freelance Manufacturers Could Boost U.S. Competitiveness

Harvard Business Review

Many of us admire Apple for its originality but tend to forget the importance of its power-supply innovations, all of which were done in China by a Taiwanese company. By shifting much of their production to Asia, Western companies have also offshored critical aspects of innovation. In photonics, offshoring has sometimes prevented U.S. Apple produces in China because its entire supply chain is there. The U.S.

Businesses Can No Longer Avoid Becoming Political

Harvard Business

Rather than being undercut by new, lower-cost competitors in rapidly developing economies, such as China and India, companies have globalized their supply chains or offshored their production. presidency by promising to protect ordinary Americans from the ravages of international trade and immigration and by threatening punitive action against firms that offshore production.

Where Trump Does (and Doesn’t) Have Leverage with China

Harvard Business

First, he needs to string together enough Carrier-type deals, especially among large factory complexes that influence the wider supply chain. This is not a charity move on Walmart’s part, but rather a management effort to educate and train American manufacturers on the hidden costs of offshore sourcing and how to be more effective suppliers to Walmart. It seems President-elect Donald Trump isn’t interested in business as usual with China.

Community Financing Breathes Life into a New U.S. Manufacturing Firm

Harvard Business Review

Trouble is, two recessions in 10 years have cut the capital fuel supply to the tech-company-creation engine. Combine that with the offshoring mania among established manufacturers, and you've got a full-blown crisis. Even in this contentious election year, all sides agree on one issue: The loss of American manufacturing jobs over the past decade has been a disaster for the U.S. economy.

New Math Will Drive a U.S. Manufacturing Comeback

Harvard Business Review

These factors include China's rapidly rising labor costs, which we discussed in an earlier HBR blog ; the increased value of the yuan; the challenge of managing long-distance supply chains; the quality control concerns that continue to haunt many manufacturers that have offshored production; and the significantly higher productivity of U.S. Making the United States an even more attractive location for factories and investments is critical for the health of our nation.

Entrepreneurs Take On Manufacturing

Harvard Business Review

“A lot of lifestyle businesses used to not be able to get started in larger-run manufacturing which was a pitfall for any small-scale renaissance,” observes Mark Hatch, founder of TechShop , a chain of urban maker spaces in U.S. given the nation’s advantages in creativity, software, and cloud-based business organization, even if much of the resulting new production winds up offshore.

The Rebirth of U.S. Manufacturing: Myth or Reality?

Harvard Business Review

include a growing desire to locate their manufacturing near their customers so they can respond quickly and efficiently to customer needs and drive growth, while simultaneously de-risking the supply-chain. In the future, many commoditized products will continue to be made offshore. The media has been full of reports lately about a renaissance in U.S. manufacturing.

Crisis Management Failures in Japan's Reactors and the BP Spill

Harvard Business Review

Although the Japanese nuclear event is not yet a week old and information is impressionistic and fragmentary, it bears a striking resemblance in a number of dimensions to the Gulf spill which occurred almost a year ago and has since been carefully analyzed (see, for example, the Report of the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling , January 11, 2011): Response Plan.

America's Innovation Shortfall and How We Can Solve It

Harvard Business Review

innovation, in terms of jobs, income, revenue, and taxes, has gone offshore. America's Corporate Elite used innovations in IT and communication to build more efficient supply chains, and turned to China for the lowest-cost manufactured goods and India for the lowest-cost services. The tenth anniversary of 9/11 amidst the ongoing employment crisis has opened a wide conversation about what ails America and what should be done about it.