Abstract
This study will help to understanding the success factors involved in manufacturing outsourcing decisions. In traditional way companies was thinking about outsourcing is only for cost cutting and reduce to the headcounts, but in today’s world this trend is changing, and many companies are also using outsourcing for their core competency not only for cost cutting but for flexibility, make free to internal resources for other purposes, available cash and capital for R&D (research and development). Many companies (manufacturing) are going towards outsourcing their core competency and now companies believe on continuous improvement and facilitation to the customers and make them satisfied and delighted. In the research results most important factor is “supplier competency and reliability” in manufacturing outsourcing decision. Now companies are going towards strategic outsourcing and companies have understood which product they can make in-house or which products they can make by outsourcing in more better way, there are not many successful examples of Dell Corporation, IBM whose are using outsourcing as an strategic. Effective manufacturing outsourcing strategies are not just implemented but should be shaped and mold for particular business and with the competitive need of particular business.
Highlights
Outsourcing Decision in the manufacturing industry is very hot topic from last few decades
After the in-depth analysis of the responses, we were able to represent results, almost 37% of the companies reported, they have yet to implement to the outsourcing decision for their activities of manufacturing after in-depth reviewing the decisions
Average implies that decision of outsourcing in manufacturing industry are relatively low rate as compare with other industries which represent that’s still many manufacturing companies are not willing to use outsourcing manufacturing decisions. 16% of the respondents told, decision of outsourcing is depend over CEOs, 79% reported by senior and middle managers
Summary
Outsourcing Decision in the manufacturing industry is very hot topic from last few decades. Companies’ management tries to find out the way of leveraging capabilities internal and external both. In 1996 Expenditure of outsourcing in U. S was more than $100 Billion Ehie, I. Manufacturing accounts is almost 2/3 (two-third) of all outsourcing. Manufacturing account of durable and nondurable goods was 39% and 25% respectively out of all outsourcing activities Dun and Bradstreet, (1997). C, (2001) Electronics manufacturer spent almost $627 billion to produce their product by outsourcing which was 13% approximately of all outsourcing activities. Outsourcing in manufacturing industry play a vital role, but company first should identify and categorize to the all activities: which activities should be made by in-house and which activities should be outsource to gain fruitful benefits
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