| We have probably all had this experience, just as I | | | | liability is involved, you will most likely bear the burden |
| have on a regular basis. You start your day, open your | | | | alone. |
| email, and no matter how good your Spam filters are, | | | | As a web designer, I face the same competition from |
| someone across the Atlantic pond slips through using | | | | offshore outsourcing that manufacturers face. There is |
| machine translated English. They are trying to win you | | | | a potential liability to this practice that will inevitably find |
| over with cheap prices, wanting you to believe you | | | | some unsuspecting buyer facing serious legal |
| can have glorious profits with all the money they can | | | | problems. One highly publicized case could open a |
| save you. | | | | floodgate of trouble for many businesses. |
| The "Buy American" bumper stickers had very little | | | | Offshore designers routinely steal content from |
| impact on the buying habits of consumers in America. | | | | various sources. I have had content stolen on a regular |
| So now, manufacturers in places such as India, Taiwan, | | | | basis, which falls under copyright infringement in the US. |
| Korea, and China are aggressively seeking to capture | | | | It is very difficult, probably impossible, for content |
| the business market in North America too. Many | | | | owners to legally prosecute the thieves located |
| American companies have learned the hard way that | | | | offshore. However, if a US company had stolen |
| the savings are not what they appear to be, and it can | | | | content provided by an offshore source, they would |
| also have devastating consequences. | | | | be extremely vulnerable to a copyright infringement |
| Imagine how it would feel to create your own foreign | | | | lawsuit. It is very unlikely they would be able to hold |
| competitor who can sell a knock off of your product | | | | their offshore provider accountable either. |
| using your very own tooling and trade secrets. Once | | | | In a case study cited by the North American Die |
| they have the specs and tooling, they have everything | | | | Casting Association, a restaurant kitchen equipment |
| they need to compete against you or sell to your | | | | manufacturer encountered a serious problem with one |
| competitors. You are legally protected from that using | | | | of their vendors using offshore outsourcing, resulting in |
| domestic suppliers, but that protection mostly stops at | | | | a lawsuit against the vendor. The vendor was having |
| our shorelines. | | | | door handles cast in Taiwan that were made of low |
| When you use a domestic supplier, you are usually | | | | grade materials which were pulling right off the units |
| getting expertise and design assistance. They can | | | | they were installed on. |
| often help you make a good idea even better. If you | | | | These units were made in such a way that the door |
| go offshore, you may have a language barrier and | | | | handle could not be replaced without replacing the |
| cultural differences to make things more difficult. | | | | entire door. The Taiwanese company would not cover |
| Instead of a helping partner, you often get a | | | | the losses caused by their defective product, so the |
| management nightmare, missed deadlines, and poor | | | | vendor refused to cover the cost of replacing the |
| quality. | | | | door. All relationships have been severed, the vendor |
| International law experts, market research analysts, | | | | lost a customer and gained a lawsuit, and there are no |
| and global commerce consultants do not come cheap | | | | winners. This is a case of offshore outsourcing |
| either. This can quickly consume the apparent savings | | | | devastating an entire supply chain. |
| being offered with offshore outsourcing. If you do not | | | | The good news is that many of those who have |
| consult with these types of professionals, you could | | | | learned hard lessons are now back to dealing with |
| easily be inviting disaster. | | | | North American suppliers. Some companies have used |
| Even in a best case scenario, your regular physical | | | | offshore outsourcing with great success, but that does |
| presence will be required overseas. This will involve a | | | | not mean it is right for your business. The horror |
| great deal of travel expenses. Relying on a third party | | | | stories that real businesses have experienced mean |
| already located overseas to provide management | | | | you can learn from their mistakes instead of making |
| services may not be a good option. The experiences | | | | them yourself. Before making the jump across the |
| of those who have tried this approach would strongly | | | | pond, serious research is a prudent thing to do. |
| suggest it is not worth the risk. You need to be there, it | | | | If offshore outsourcing works for your company, it is |
| is your business. | | | | not an inherently evil thing to do. If it does not fit with |
| If you are considering the move to offshore | | | | your business model, offshore outsourcing can have |
| outsourcing, making sure your quality specifications are | | | | hidden costs that make it more expensive than just |
| consistently met is exponentially more difficult than | | | | keeping your money here and supporting your |
| using a domestic supplier. If your product fails due to | | | | neighbor. If you jump in without due diligence, you might |
| manufacturing defects, an offshore manufacturer is | | | | end up adding your horror story to the casualty list. |
| much more shielded from responsibility. If product | | | | |