Research & Insight

Research & Insight

China

Study: U.S. Companies Prefer “Farshore” to Nearshore Outsourcing, Send Higher Value Work Abroad

Outsourcing Center, Samuel Crow, Senior Business Writer

For all the talk of the new allure of nearshore or even stateside outsourcing, most U.S. companies today still prefer to base their service operations half a world away, according to researchers at the Center for International Business Education and Research (CIBER) and the International Offshoring Research Network’s (ORN) Project at Duke University’s Fuqua School …

Unprotected Tooling: High Risk Practices in Chinese Manufacturing Part 2

Thomas Keenan and Geofrey L. Master, Mayer Brown JSM

In part 2 of this series, we’ll discuss common problems in tooling as well as tooling in the real world and the importance of comprehensive, enforceable tooling arrangements. Part 1 defines tooling as part of the integrated outsourcing process as well as tooling financing and ownership. As a result of globalization and the ability of …

Unprotected Tooling: High Risk Practices in Chinese Manufacturing – Part 1

Thomas Keenan and Geofrey L. Master, Mayer Brown JSM

As a result of globalization and the ability of consumers to purchase products at the lowest cost, Chinese manufacturing has become an integral part of the supply chains of many consumer product companies. With the high level of integration of consumer product companies and Chinese manufacturing, there is an increasing reliance on manufacturers to finance, …

The Evolving Product Sourcing Value Chain in China – Part 2

Thomas Keenan and Geofrey L. Master, Mayer Brown LLP

The entire sourcing value chain for consumer products sourced or manufactured in Asia has become increasingly interconnected and mutually reliant—ownership of physical manufacturing assets and intellectual property rights has become more ambiguous and contentious. With ambiguity over ownership and rights to manufacturing assets, customers lose the key leverage of mobility. While brand companies were able …

The Evolving Product Sourcing Value Chain in China — Part 1

Thomas Keenan and Geofrey L. Master, Mayer Brown LLP

The product supply chain from China is not what it used to be. Over the past 20 years, Chinese consumer-product manufacturers have become increasingly sophisticated and capable of taking on more “value-adding” tasks or segments of the product creation supply chain and have moved from mere manufacturers to multi-functional suppliers. In doing so, they have …

Independent Insurance Agencies Embrace Outsourcing to Thrive in a Challenging Market

Outsourcing Center, Patti Putnicki, Business Writer

It’s not easy being an independent insurance agent these days. Margins are down, the market is soft and direct sellers are promoting a virtual, ‘click-and-pick’ approach to an industry traditionally built on personal relationships and trust. To increase profitability, these agencies have to run lean, automating as many processes as possible. However, even with the …

BDO Annual Technology Report Finds CFOs Outsourcing More Work to China, India, Reversing Last Year’s Trend

Outsourcing Center, Beth Ellyn Rosenthal, Senior Writer

What a difference a year makes. A 2009 study of American chief financial officers in U.S. high-tech companies predicted the new hot location was the United States. The 2010 study discovered the opposite: China and India regained their position as the primo offshoring locations for IT services, according to Don Jones, Partner, International Tax Services …

In-house Language Skills Enhance Offshore Engagement and Enable Greater Savings

Outsourcing Center, Bruce McCracken, Business Writer

Application development costs and speed to market are critical for a startup with a new concept. Because the founders had to prove the concept, they didn’t want to spend a lot of capital. Hiring U.S. developers was not in the budget. A Chinese service provider got the job done at half the cost.

Areas Where Outsourcing Will Grow in the Next Five Years

Outsourcing Center, Beth Ellyn Rosenthal, Senior Writer

Our experts predict several areas of the industry will experience significant growth over the next five years. Predicted growth areas for outsourcing will include reverse outsourcing, verticalization, emerging markets, business analytics, healthcare, transportation, and ERP, among others. Industry trends Andrew Pery, Chief Marketing Officer, Kofax, says one of the predicted growth areas for outsourcing will …

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