{"id":2610,"date":"2017-04-15T16:09:38","date_gmt":"2017-04-15T16:09:38","guid":{"rendered":"http:\/\/www.openbusinesscouncil.org\/?p=2610"},"modified":"2022-07-01T13:18:11","modified_gmt":"2022-07-01T13:18:11","slug":"outsourcing-help-business-evolve","status":"publish","type":"post","link":"https:\/\/www.footballthink.com\/outsourcing-help-business-evolve\/","title":{"rendered":"Could Outsourcing Help Your Business Evolve?"},"content":{"rendered":"
More and more companies are outsourcing various areas of their business to other countries. There are a number of benefits to outsourcing, particularly in manufacturing. If you are considering outsourcing the manufacturing arm of your business, there are a few things that you should think about. Here are the main benefits of outsourcing your manufacturing.<\/p>\n
<\/a><\/p>\n Labor Costs<\/b><\/p>\n In the western world, people that work in manufacturing can command a very high wage. Compared to other countries, like China <\/a> for example, you will be paying out a lot more money in wages if you keep your manufacturing operation at home. However, you need to be careful that you are not exploiting workers by underpaying them, as this is a big problem is some developing countries. Before you decide to outsource, you need to look into the company that will be handling it, and make sure that working conditions are at an acceptable level.<\/p>\n Overhead Costs<\/b><\/p>\n As well as cheaper labor costs, the general overheads are a lot cheaper when manufacturing abroad. Renting a manufacturing space in the US <\/a> is very expensive, but abroad you can cut these costs by more than half. That is why the cost of domestic vs injection moulding in China is so much lower than in the western world. It is also a lot cheaper to get insured, pay utility bills, and maintain the building itself. Having said that, you will have to factor in the cost of shipping the goods back to your home country, so make sure that the cut in labor and overhead costs is not counteracted by the cost of shipping.<\/p>\n