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Outsourcing

Research Reveals Outsourcing R&D Abroad Boosts Innovation

Businesses that outsource research and development (R&D) overseas are more likely to innovate than those who outsource at home, says new research. IBM’s strategy of building research capability in places like Switzerland, China, and India mirrors that of GE, Intel and others. Ordinarily the purpose of outsourcing R&D was cost reduction, but many are now doing it to boost innovation as well.

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GE’s Jeff Immelt Says U.S. Companies Have the Capability to Compete Globally

When Jeff Immelt took control of GE as CEO in 2001, 70 percent of the company's business was domestic. Today 65 percent is derived from outside the U.S. As a result, Immelt is pushing for American companies to become more competitive in world markets— something he believes whole-heartedly can be done. Here's what the GE CEO had to say about interational operations and the effort to get more U.S. companies in the game.

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Does Your Company Outsource Too Much (like GE)?

“In some areas we have outsourced too much,” General Electric CEO Jeffrey Immelt acknowledged in a speech as he announced plans to open a new manufacturing research center outside Detroit that will create more than 1,000 jobs. Sometime after Immelt made his remarks, Boeing acquired a South Carolina factory from one of its key suppliers, Vought Aircraft Industries. Bringing the ...

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Why U.S. Telecom Companies Need to Get Out of the Pipeline Business

The U.S. telecom landscape is shifting quickly and companies rethinking their traditional business models. No longer are service providers known positively for their infrastructure (AT&T is blamed when there's a dropped call on a beloved iPhone), but rather phone companies are praised for their products. To solve these problems, the U.S. should look to India.

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Making Offshoring Work

Offshoring services has been a favorite and cost-effective exercise for many global companies based in the U.S. and the EU. But, owing to varying approaches, not everyone succeeds equally well. Offshoring operations simply to save direct labor costs has limited utility because over time labor costs rise. Offshoring to take advantage of lower direct costs and the skilled Indian labor ...

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