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Problem

Describe the characteristics of products and services that would represent poor candidates for outsourcing.

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Outsourcing is the process of subcontracting certain activities like manufacturing to a third party. It is very important to decide upon relocating certain processes like R&D, manufacturing and customer services to RDE’s as it involves economic and environmental factors.

The main criteria for outsourcing to RDE are, the products and services should favour high labour cost, high growth potential, large RDE markets, good manufacturing and delivery of services and products.

Therefore, services that are relocated usually have a well defined process map. It is a must be keep a check on the criteria before going ahead with outsourcing.