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Offshoring Outsourcing
Since the 1970s, many Western companies began
manufacturing products in offshore locations such as Japan,
Korea, Thailand, and Taiwan. Despite the relatively high
cost of transporting the goods by sea and air, it was
cheaper to make them in the Far East (and in Mexico after
the NAFTA treaty) than to keep manufacturing in the United
States or Europe.
The bottom line: With outsourcing's next wave crashing on the shore,
businesses that don't figure out a way to surf it will be forfeiting significant
competitive advantage. Yet, as with all management tools, BPO will continue to
reflect the ability of forward-thinking managers to anticipate and adapt to
change and to use outsourcing effectively within an overall framework of
continuous improvement that matters.