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Review: Offshoring - a necessary evil? - 23 April 2008

23 April 2008 at Speechly Bircham, London EC4.

Introduced by:   Ian Smith, VP Programmes

Speakers:         Apara Guha, Cushman & Wakefield
                        Alan Carswell, Black & Decker
                        Harry Cole, Electrolux
                        Robert Bond, Speechly Bircham
                        Alan Julyan, Speechly Bircham

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So, what exactly is ‘offshoring’?   Well, it depends where you start from.   Is it necessary and is it or not an ‘evil’ better avoided if possible?   We have all heard the horror stories.   This members’ forum evening aimed to iron out some of the worst and explain why and how. 

Apara Guha kicked off with the world market overview.  Having worked in India, she has a real understanding of overseas operations there, and, listing some of the major internationals who have moved operations to India, she explained the process, from an initial simple manufacturing facility to highly technical expertise.   As she said, ‘from business processing to knowledge outsourcing’. 

Alan Carswell and Harry Cole performed a virtual double act from the global manufacturers’ point of view.  Between them they outlined the drivers for and against moving operations elsewhere - cheaper basic manufacturing costs and tax advantages, as against longer and slower distribution systems.   They pointed out the need for continual re-assessment:   while labour costs are currently less in eg Poland, these costs are rapidly rising, possibly to a point where they will no longer be so attractive.  And for manufacturers, for whom distribution is a major part of the overall cost  - too far from the market place is too expensive.

Finally, Robert Bond and Alan Julyan gave a brief indication of key legal considerations for employers, from a check-list ranging from corporate structures to control of intellectual property, and the worldwide implications of the TUPE regulations and the importance of consultation. 


Alison Sutherland
AVS Publicity

 Offshoring

 

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