Factors Influencing Decisions to Outsource
- Created by: elise.surtees
- Created on: 04-02-19 11:56
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- Factors Influencing decisions to outsource
- Available capacity
- Spare capacity - produce in-house
- Expertise
- Often better expertise when outsourcing
- Quality considerations
- Off-shoring: used to describe outsource/subcontract when the activity being transferred takes place in a different country to the contracting company
- Nature of demand
- Often used when sudden climb in demand
- Cost - particularly low cost
- Level of risk
- Loss of control over operations/know-how
- Boeing outsourced 70% of Dreamliner and experienced quality problems
- Loss of control over operations/know-how
- Impact of profit
- Outsourcing may reduce profitability
- Available capacity
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