It is a rare occurrence that a single business or public entity is one hundred percent self-sufficient. Outsourcing projects, services, and manufacturing of goods to third-party organizations that specialize in a particular function, is a strategy used by many entities to save costs. One of the reasons why outsourcing is successful is because third-party organizations can be more efficient in delivering the goods or services in question. The question is how do organizations connect with each other to find the perfect match between what one entity needs to produce and what another entity is an expert at producing? AsianProSource.com is an outlet for connecting domestic entities with outsourcers in China.
Selecting an outsourcer based in a foreign country can present several unique challenges. First, there may be cultural barriers and concerns about trusting an outside organization with proprietary information that could impact the originating organization’s integrity. The optimal course of action is to perform a cost benefits analysis. Will outsourcing a particular manufacturing process or service delivery to an outside organization reap more benefits than disadvantages? Does it make sense from a long-term cost perspective? If your customers are dissatisfied with the service levels your outsourcer provides in your organization’s name; the long-term costs can outweigh any immediate savings.
Another barrier to selecting an outsourcer from a foreign country is knowledge. What organizations exist in countries such as China that are both willing and capable of delivering what your organization needs? What organizations are reputable and how does your organization start connecting with these companies? Who does management trust to help navigate the unknown? This is where an intermediary can help facilitate the process. The intermediary is aware of conditions on both sides of the coin and can help management avoid costly mistakes. An intermediary can even make it possible to avoid lengthy and disruptive travel to the other country.
The decision to trust an outside organization with the manufacture or delivery of products and services on your behalf is not without risks. Outsourcing is a growing trend since clearly organizations can develop specialized competencies, just in the same manner that individuals develop different skill strengths and capabilities. Outsourcing with an organization based in a foreign country does not have to be a frightening process. With the help of a sourcing intermediary, management can find the partner that will best meet the organization’s needs.