Archive for February, 2008
Issue Cover
Background
The Factea Filter – Offshoring Issue Analysis – is the result of more than 15 years of consulting and operational Offshoring/Outsourcing experience for companies operating in various industries (automotive, textile, electronics and daily use products, chemicals, etc.), among which many dealing with very complex Offshoring issues
History
The Factea Filter – Offshoring Issue Analysis concept was born while leading several Offshoring projects for Global and International firms. At first, the purpose of developing such a model was to ensure that all issues were perfectly addressed on both strategy and implementation phases.
After successfully using a preliminary model, Factea experts decided to go further in the Offshoring issue analysis. Therefore, Factea Consulting Research Center was assigned during 3 months in order to develop a generic and high level management model providing the structure and key questions to assess a company Offshoring potential / project feasibility. To achieve this goal, Factea Research Center has continuously involved and interviewed:
- Offshoring experts and economists
- Trade unions Offshoring – Outsourcing project managers
- CEOs of company of all size
The consistency and robustness of the model has been challenged by testing it on more than 350 diversified case studies (all type of industry, company size, financial situation, origin, etc.)
The Factea Filter describes the factors that enable or disable a company to offshore its activity. This management model is based on a narrowing 8-step issue analysis structured around 3 dimensions.
Dimension 1 – The Customer
- 1. Proximity sensitivity: Does the product or service require “face to face” interaction with the customer?
- 2. Origin sensitivity: Are the customers indifferent to the product or service country origin?
Dimension 2 – The Industry
- 3. Infrastructure: Do sufficient infrastructures exist in the Offshoring targeted areas?
- 4. Duplicability: Is the product or service easily duplicable in the Offshoring targeted areas?
- 5. Regulation: Is the product or service free from significant regulation?
- 6. Benefits: Are Offshoring costs lower than the difference between production cost in the consumption country and the production country?
Dimension 3 – The Company
- 7. Resources: Does the company have sufficient resources to support the Offshoring process?
- 8. Will: Do top management and shareholders have the will to offshore the activity?
Is a company likely to offshore its activity?
Answers: a company is likely to offshore its activity when all 8 answers to the Key questions are “yes”; a company is unlikely to offshore its activity when one answer to a Key question is “no”
Usage
- Quickly scan a company activity through the Filter and obtain a preliminary answer of whether a company is likely to offshore
- Assess the feasibility of an Offshoring project through an issue analysis from both the Top Management and the Unions side
- Provide the basis and the structure to identify and investigate on the existing constraints (“No” answer to the key question) to define an possible action plan
- Use the model as a risk management check list or assessment model before an Offshoring project
Advantages
- Both strategic and operational Offshoring issues covered
- Innovating
- Exhaustive
- Pragmatic / operational
- User-friendly
- Neutral
About the Author:
Article Source: ArticlesBase.com – The Factea Filter – Offshoring Issue Analysis
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