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Outsourcing to Mexico

In: Business and Management

Submitted By kimberli123180
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Outsourcing to Mexico or China
Kimberly Griswold
Southern New Hampshire University

Many companies decide to outsource to save on costs. China is one of the most popular countries to use for outsourcing. The outsourcing in China has helped China and the businesses. The lower cost of outsourcing to China has helped many companies obtain a competitive advantage. More companies are now looking to outsource in other countries. Another county that is getting a lot of attention is Mexico. There are advantages and disadvantages to both China and Mexico. There are many advantages to outsourcing in China. The first advantage is experience, China has been used my many companies for an extended amount of time so they already have standards in place. Another advantage is China has extreme inexpensive labor. The employees in China are also educated and learn fast and work very hard. “Through-put is clearly better in China than in Mexico. Attendance, punctuality, and productivity bonuses are not needed” (Amter, 2011). Many retailers are also now growing “less dependent on brand names in part because they, and their suppliers, demand and receive good value from Chinese suppliers” (Advantages of Outsourcing in China, n.d.). There are also disadvantages to outsourcing in China. China is a communist government and is very prone to piracy and counterfeiting. There is a lot of internet hacking that is a cause of concern when outsourcing to China. China is also a growing economy because of the outsourcing and we all know with growth comes the demand for higher wages and better benefits. This, of course, contradicts the entire point of outsourcing to China. China does not border the United States and “goods can take 45 days on average to reach the...

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