Tuesday, April 14, 2009
OUTSOURCING AEROSPACE MANUFACTURING ENTERPRISES
Many aerospace workers believe transferring work projects abroad has an erosive effect on the U.S. aerospace industry (Pritchard, 2002). A qualitative phenomenological study was conducted to examine factors for outsourcing decisions and the perceived effects of outsourcing on U.S. aerospace workers. The research sample consists of aerospace industry leaders and nonleaders from the East Coast, Midwest, and West Coast of the United States. Findings identified five core themes: communication, best value, opportunities, cost, and offset consideration. How might the themes provide the framework for future business models designed to assist leaders in making effective decisions and communicating the benefits of those decisions when considering outsourcing of work projects?
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What are the factors influencing outsourcing in your industry today?
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ReplyDeleteDedication. Although I am a technologist, I outsource major technical tasks to a female Canadian entrepreneur who is dedicated and appreciative. Over the course of approximately 5 years, outsourcing the various technical tasks has allowed me to focus more so on research and the overall objective and development of the research firm. Due to the cultural differences, a language barrier exists even virtually. However, both being a technologist and a work-at-home mother have simplified the processes.
ReplyDeleteI think the leaders before making decisions on outsourcing need to ask and respond, honestly, why outsource? Companies of course look at profits because there is ususally a board of directors, share holders, and stake holders expecting a return on their investment. But the effects of outsources, in my opinion, has an economic effect not only on employees but community business dependent on employees to purchase food, clothing, etc from their business. If jobs are outsourced that has an effect on the economy of the local community. Decisions to outsource should not be left to leadership but it should include reps from various levels of the organization. This will enhance communication and decision making, hopefully. Communicating the benefits of outsourcing is difficult at best but it can be done if all parties has the opportunity to discuss the pro's and con's
ReplyDeleteThere are many factors that influence outsourcing based on the industry type. I would offer operational knowledge, cost, and reputation of the vendor as important factors that influence whether to outsource or not. Companies want to work with vendors that have related experience in the services they want to outsource. It helps if the vendor already has a proven relationship with a similar operation in the organization and can speak the company’s language. Cost is another factor for consideration to outsource or not. The company wants to ensure that the cost to train the vendor’s staff is less than the cost to hire in house, train, and support the operation without impact to the quality of service. It is a plus if the vendor is flexible and can assist in different parts of the organization. Finally, the reputation of the vendor is important. Companies want to know of other prominent companies that the vendor has worked with. Vendors have to prove themselves and share their repertoire that sets them apart from their competitors. Because vendors work with other companies, their technological capabilities are normally more advanced and can offer services that the company would have to pay tons of money for to offer something similar.
ReplyDeleteThank you all for your comments on my post in 2009. Looking back to 2009, US manufacturing was in a decline as more low to medium complex factory jobs were outsourced as means to reduce operational cost and increase company profits. Let’s face it, most US consumers would not pay more for consumer goods to promote US manufacturing. Therefore, what is the right approach to bringing back manufacturing jobs to the US? Most economist advocate the catalyst for job growth could be increased by production of high-end technology manufacturing and R&D as a means to shift the way consumer goods are produced in the US. The problem with this approach is the need to increase the number of the country’s Science, Technology, Engineering, and Mathematics (STEM) workforce to meet demand. Most high paying jobs are in the area of STEM. How can we motivate the country to promote more STEM graduates to meet this demand?
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