Trends in outsourcing manufacturing

Ghasi (2002) discusses two key trends within outsourcing: the product life cycle in the marketplace is shrinking due to competition, and secondly, after analyzing a rise in outsourcing to OEM'S, the companies have extended their supply chains In this article the benefits of outsourcing are covered with a particular emphasis on OEM'S and its advantages in product design or productivity has being discussed. Ghasi (2002) has used industry examples to support his arguments, of which two are most relevant to Global Teleco.

These include how to create a value chain, and another highlights how to reduce the time to market and increase volume. He concludes by arguing that manufacturers can go further than outsourcing and follow a collaborative manufacturing approach to add value to the supply chain by 'doing it faster'. This article is useful in highlighting the information and techniques of how manufacturers are reducing the associated risk with outsourcing. These are the key issues to be considered by any company when they are outsourcing, these issues are detailed in this article which helps us in making the decision for Global Teleco.

Secondary Data Measurement To commence our research we will conduct secondary data research through the use of academic books and journals. By using published data within the books and journals we will find references of further published work in the field of outsourcing to build up our resources to draw on. Our analysis of the data will involve us categorizing data to enable us to identify the key themes, categories, variables and frameworks that are emerging from the research, in a bid to direct our project and meet our research objectives.

Primary Qualitative Data Measurement We will conduct a questionnaire with Global Teleco to identify how they are outsourcing now. Following this survey we will then conduct semi-structured interviews with other companies within the industry who are currently outsourcing to identify what they are doing, how they are doing it and any challenges they have faced. To analyze the data we will use a theoretical framework established from our secondary data to analyze the answers provided.

Primary Quantitative Data Measurement Our quantitative data measurement will include a questionnaire incorporating closed questions requiring ranked answers. It will be distributed to companies within the telecommunications industry to identify what they feel are the strongest factors that have impacted on their ability to outsource. This questionnaire will help us quantify what the perception is within the industry from a practical point of view and aid comparison with our theoretical findings.

REFERENCES

Fan, Y,2000, Strategic outsourcing: evidence from British companies, Marketing Intelligence & Planning, 18(4),213-219

Ghasi N, 2002, Trends in outsourced manufacturing-reducing risk and maintaining flexibility when moving to an outsourced model, Assembly Automation, 22(1), 21-25

Lankford.W.M, Parsa.F, 1999 Outsourcing: A primer, Management Decision, 37,( 4), 310-316

McIvor. R, 2003, Outsourcing insights from the telecommunications industry, Supply chain management: an international journal,18 (4), 380-394

Power.M, Bonifazi.C,Desouza.K, 2004,The ten outsourcing traps to avoid, Journal of Business Strategy,25(2), 37-42