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Speeding to Market

By: Leslie Benson
Posted: June 9, 2008, from the June 2008 issue of GCI Magazine.

page 5 of 11

GCI: What has been stimulating the growth in outsourcing?

Glenn Sandgren: Companies seeking to cut costs, shrink new product introduction cycles and improve capitol efficiency.

Bill Hunt: Outsourcing is being driven by financial measures on public companies by financial markets. The financial markets are demanding higher revenue per employee for productivity, better return on capital and higher growth rates, while customers are demanding increased customer service through better logistics systems, increased speed through the supply chain and innovative products. The solution is to outsource manufacturing and concentrate on R&D for new products, better logistics systems, better packaging and, of course, better advertising.

GCI: What are the benefits of outsourcing?