Featured Product
This Week in Quality Digest Live
Metrology Features
Sabine Terrasi
NDT imaging coupled with board-level, real-time image easily locates faults in composites
Hexagon Manufacturing Intelligence
Offset-aware programming of spindle transfers and bar pulls helps manufacturers drive multichannel CNC machinery
George Schuetz
Hand gauges at the point of manufacture are commonplace, but this doesn’t mean just any gauge can be used
Sabine Terrasi
APREX inspection system checks plastic bottle caps for defects running at high speed on a production line
Emily Newton
Technology and processes improve food quality and purchaser trust

More Features

Metrology News
Global 3D metrology leader expands with new center in Texas
Delivers curved-surface analysis tools, helps deploy PolyWorks|Inspector as a standard offline CNC/CMM sequencing solution
Multiple measurement and statistical displays with numeric and graphic layout, trend limits, data traceability, batch management, part counters, data storage
OE720 optical emission spectrometer covers entire spectrum of elements in metal except for gases like oxygen and hydrogen
Digital solution combines real-time, remote insight with continuous monitoring and advanced data analytics
Online software for collecting measurements, visual-defect information, and pass/fail situations
Simplifies workflows and enhances ease of use for manufacturing, assembly, and construction
Use X-Rite spectrophotometers to render digital material file for 3D design, production, and quality control teams
IDS cameras help inspect up to 120 vials per minute for dimensional accuracy or surface condition

More News

Quality Digest


Offshoring Brings Sometimes Unexpected Risks

Published: Monday, March 14, 2005 - 23:00

Most experts don’t see an end to the offshoring trend, but with an estimated half of all offshoring operations falling short of expectations, companies considering sending their operations overseas have to consider the risks—not merely the rewards—of doing so. The findings come from a report, “Thinking Offshoring Through: A Framework for Decision Makers,” released by The Conference Board. The report reveals that unless corporate leaders address the full spectrum of offshoring challenges, underperformance will grow, leading to significant effects on corporate operations.

“Companies now need a comprehensive decision-making framework to help senior executives rationally and systematically assess the risks and rewards of offshoring,” says Ton Heijmen, senior advisor to The Conference Board on offshoring and outsourcing.

The report reveals that many companies that offshore operations suffer from poor project management, inadequate internal and external communications, and ill-conceived transition plans. Many companies focus on security risks and neglect others: damage to the company’s reputation, social responsibility, human capital, and regulatory and legal difficulties.

The report concludes that successful offshoring operations depend on the comprehensive analysis of a full spectrum of factors: location, process, scope and participating business units among them. Successful companies must consider the tradeoffs of cost, proximity, convenience, time to market and depth of resources. They must survey all of their options in each available market, from the quality of vendors and staff (and their skills, language abilities and motivation), to the offshoring country’s business environment and the availability of government incentives. The report endorses the use of a risk management framework for offshoring organizations.

“Once a company outsources or offshores, it’s on its way to creating a virtual corporation—a network of companies and operations that must work together and should act as if they were one integrated firm,” says Heijmen. “Beyond advanced IT and communications capabilities, this virtual organization requires special approaches to organizational and behavioral management, and the coordination of internal and external relationships.”

The Conference Board will host its Strategic Outsourcing Conference in New York City, April 27–29. For more information, visit www.conference-board.org.


About The Author

Quality Digest’s picture

Quality Digest

For 40 years Quality Digest has been the go-to source for all things quality. Our newsletter, Quality Digest, shares expert commentary and relevant industry resources to assist our readers in their quest for continuous improvement. Our website includes every column and article from the newsletter since May 2009 as well as back issues of Quality Digest magazine to August 1995. We are committed to promoting a view wherein quality is not a niche, but an integral part of every phase of manufacturing and services.