Today’s global environment has placed increased pressure on Hi-Tech manufacturers to become more competitive and profitable. Global outsourcing activities have increased in importance and have increasingly emerged as a key strategic tool in achieving cost reduction, quality and delivery improvement, cycle time reduction, and improved responsiveness to customer, competitive, and financial market demands. It is estimated that a well planned and executed global outsourcing strategy can result in a cost savings differential of 15 to 25 percent when compared to manufacturing in-house.

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Using external suppliers to design, manufacture, ship and service products or components – has been a growing trend in recent years as Hi-Tech manufacturers have sought, among other things, to divest themselves of some production capacity (and the inherent risks associated with owning capital equipment), lower their labor costs and maintain greater flexibility in the face of ever-shrinking product lifecycles.

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