Manufacturing

Technology is transforming how and where goods are manufactured. Offshore locations are no longer about cost arbitrage, but about being closer to the new customer bases in developing countries of India and China. Mckinsey estimates that by 2025, emerging markets share of global demand is expected to reach 66%.

Reverse innovation from developing countries like ‘circular economies’ that encourages refurbishment, reuse and recycle is finding increased adoption in production techniques in the western world. Disruptive technology like 3D printing, advanced robotics and mobile device enabled operations will transform the way manufacturing operations are run.

Key issues in front of these companies are

• Sustaining profitability through of business cycles
• Optimizing location decisions
• Building supplier ecosystem
• Developing people and skills
• Defining their social media strategy in their larger business

Drivers for outsourcing

• Need for standardized global practices
• Commercial advantage
• Focus on core competency

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