Business practices differences.
  • Variations in quality relative to offshore business size and age.
  • Labor content considerations.
  • Logistics costs.
  • Schedule flexibility differences.
  • Product maturity considerations.
  • Product mix considerations.
  • Security considerations.
  • Intellectual property issues.
  • Realities of doing business in third-world countries.
  • Key words: outsourcing, offshore, EMS, China.">

    SMTA International Conference Proceedings


    CALCULATING THE REAL COST OF OFFSHORE OUTSOURCING

    Author: Susan E. Mucha
    Company: Powell-Mucha Consulting, Inc.
    Date Published: 9/21/2003   Conference: SMTA International


    Abstract: China and other low cost labor regions have gained significantly in popularity over the last few years. In many of these developing regions, electronics manufacturing has gone through over two decades of maturation. Offshore electronics manufacturers in these regions include foreign subsidiaries of well-known U.S. original equipment manufacturers (OEMs), U.S. electronics manufacturing services (EMS) providers and "home-grown" OEMs and EMS companies.

    Virtually, any manufacturing service available can be performed in these low cost regions with similar levels of quality and technical expertise. However, not all product is a good fit for offshore manufacturing. This paper looks at the opportunity costs that can arise when bad fit projects are migrated offshore.

    Areas evaluated include:

  • Business practices differences.
  • Variations in quality relative to offshore business size and age.
  • Labor content considerations.
  • Logistics costs.
  • Schedule flexibility differences.
  • Product maturity considerations.
  • Product mix considerations.
  • Security considerations.
  • Intellectual property issues.
  • Realities of doing business in third-world countries.
  • Key words: outsourcing, offshore, EMS, China.



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