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Outsourcing 'becoming increasingly widespread'

24 September 2010

Outsourcing activities are becoming increasingly prevalent among UK businesses of all sizes, according to a report.

Analysis from business publication City AM has suggested that the trend of only large companies outsourcing manufacturing is ending, with smaller firms taking advantage of the practice to undercut rivals and invigorate the market.

It cited the example of London-based packaging company Squeezeopen, which has slashed its initial production costs from £200,000 to £80,000 by manufacturing products in China.

Although it was suggested that this model will not be appropriate for all businesses, it stated that the option is becoming increasingly viable for many supply chain executives.

"As with every business decision, outsourcing is a matter of costs versus benefits," the publication stated.

Earlier this week Martyn Hart, chairman of the National Outsourcing Association, told ComputerWorld UK that public sector firms can also benefit from outsourcing, which will help to save money for taxpayers.

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Categories: Procurement & Supply Chain

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