Local V's offshore contracting

[Kev]

Hi All,

For professionals that do high volume work ... I'm curious. Is it still efficient, becoming more/less efficient to subcontract or manage work offshore.

Locally in Oz I was speaking to a kitchen cabinet maker that's reduced his costs and actually reduced his lead time by offshoring his work to Indonesia. I comprehend the logistics, but it just does my head in that this can be the case for custom work.

I'd really appreciate hearing people's thoughts on sourcing outside of their business and where they believe it works and where it doesn't.

Kev

 

[antss]

As long as labor rates are lower than shipping costs , this will be the case.  Quality control becomes the place you earn your fee.  Get that under control and you just become a bookie.