Why Outsource?
Outsourcing is a growing trend in the United States.
Currently, companies in the United States spend $96 billion annually on
outsourced services. About a third of electronics manufacturing is
outsourced. This is expected to grow to by more than half by 2005.
Outsourcing is a viable way to improve your core
business, while reducing personnel, payroll taxes, insurance and overhead.
Contracting out tasks that are not part of a company's core competency can
free up cash for other high return processes
Management can focus their time on growing their
business and making improvements on your product line. Finally, it is
the ability of the contract supplier to respond to the peaks and valleys
typical in the manufacturing process that makes outsourcing so rewarding for
a company.
How can you benefit directly?
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Reduce Capital Asset
Purchases |
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Increased capacity |
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Cost reduction |
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More effective resource
utilization |
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Better labor deployment |
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Higher quality product |
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Greater focus on core
competencies |