The cost reduction associated with offshore manufacturing can initially be very persuasive. However, most companies that opt for offshore manufacturing learn the hard way that reality is not so simple. The numbers on the board seldom translate directly to profits and routine technical problems can quickly spiral out of control.
Whenever we talk to the executives, managers and engineers who have been involved in offshore manufacturing , there are three main concerns which top their lists: quality, communication and personnel. It’s important to understand these problems and how their impact can be mitigated.