Outsourcing for financial success? An exploratory study

In recent years, the automakers have been forcing their suppliers (automotive parts manufacturers) to provide better quality products at competitive prices. To meet the challenge, the suppliers are outsourcing their business processes to either domestic or foreign suppliers. A survey of 160 CEO's/Presidents of automotive parts manufacturers in the North America was conducted to examine the effects of outsourcing strategy on the financial well-being of a firm. This study finds that the outsourcing strategy is widely used, and it is contributing positively to a supplier's financial performance. Keywords: Outsourcing, Offshoring, Automotive, Manufacturing, Financial Performance.
CURRENT STATE OF OUTSOURCING Global competition dictates that manufacturing firms deliver quality goods to customers on demand and at lower costs. One of the ways to be competitive is through [...]