Tampa Bay Innovation Center recently hosted a TECH Talk session with Gary Haberland, CEO of Winter Park, Fla.-based GENICON, who discussed the pros and cons of offshoring. Following are five points he presented that firms should consider in evaluating whether offshoring is right for their business.
Offshoring, or relocating business processes outside the originating country’s borders, has become increasingly popular. Many types of businesses offshore their processes, including software, customer service and, in GENICON’s case for a four-year period, medical device manufacturing.
Based on GENICON’s experience in offshoring, Haberland advises that companies consider the following questions as they evaluate whether offshoring is right for them:
Are the company’s revenues high enough to support the growing labor, shipping and material costs?
Does the company have the staffing capabilities to provide round the clock and onsite management?
Do product form, fit and function standards need to meet extreme precision and replication requirements?
Are products of a sophistication level that they require the best in production and supervision?
How important are quality certifications? Some vendors actually buy their certifications rather than earn them.
His conclusion is that manufacturers should think twice before leaving what he considers the “best in class” site for production – the United States.