When Is The Best Time To Do Make vs. Buy? | Group 50

When Is The Best Time To Do Make vs. Buy? | Group 50Excellent article.
I had worked over seas as a outsourcing contractor for several years. My opinion support 3 key observations.
There is no such a thing as protection for intellectual property in most countries around the world especially in Asia.
When the company decide to outsource their manufacturing it means change in profile and usually leads to elimination of manufacturing branch which leads to total loss of control of that phase of business.
Innovation which comes from manufacturing phase is 100% missing since all improvements are basically left to manufacturing contractor and people like me, outsiders who work on contracts and in really no body cares about our comments and suggestions.
Most important, the company basically becomes the law firm with bunch of accountants, competing with another bunch of similar brokers.
I am not intending to insult anyone especially my clients.
Another key observation is that most , and I would say 99% of outsourcing is nothing more than cannibalization of own business. Most of the companies I worked for do know that copies are being made at same time when the originals are being made. Copies hit the market 6 months ahead of the originals and basically.  serve as free advertising of upcoming new trend.
This might be interesting strategy same time Andrew Carnegie, did teach me something totally different.
Last comment.
Outsourcing is a blessing for developing countries, and does bring huge benefits to all involved.
I truly believe 80% of the benefit goes to those who do manufacturing and only 20%  stays with mother company. In long term outsourcing kills the mother company.
Peter

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