China, Hongkong, Taiwan - The Greater China Desk
Posts 1-1 of 1
-
Bill Evans(not a XING member)Insourcing- reversal of outsourcing
"...in the context of reversing an outsourcing arrangement and repatriating previously outsourced tasks back into the customer's company."
In-sourcing is beginning to be looked upon as a reality or outcome to failing and poor performing outsourcing arrangements.
No amount of analysis can definitely predict the future success of the business arrangement, the affect of market conditions, and the complexities that evolve and result between the firms involved. But being contractually prepared can help assure in-sourcing can be realized with quantifiable and manageable disruption to the businesses involved.
Too often firms that are outsourcing do not do sufficient due diligence not only of their outsourcing vendor/contractor but fail to adequately do due diligence on themselves. A very common occurrence with manufacturing and product development outsourcing is the “awakening” that an outsourcing firm very much controls the future of the firm outsourcing. Building an outsourcing arrangement on a sound legal contract has always been smart business but should now be structured with terms/conditions that will define the cancellation of the agreement and result in the reversal and cause in-sourcing.
Ms. Amy-Lynne Williams, partner in Deeth Williams Wall LLP, in her article, titled: “PLANNING FOR INSOURCING IN YOUR OUTSOURCING” speaks to the need to be prepared for the potential in-sourcing for firms that have outsourced or are in the process of outsourcing.
Go to:
http://www.techmankanata.com/ideas.htm
Bill Evans
- 04 Oct 2010, 7:08 pm
