What has led the automotive industry to offshore engineering services to low cost countries?

Steve Simplay, Zaza Nadja Lee Hansen

    Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review

    Abstract

    This paper will investigate the drivers behind why automotive organizations move product development work from high-cost countries to low-cost countries and the challenges and benefits they face when globalizing their product development model. This paper will provide a literature review of this area and present a case study of a global multinational premium automotive organization with headquarters in Germany. The findings showed that an outsourced offshore delivery center is multi-dimensional and difficult to manage when faced with such complexity.The case company decided to outsource again to a specialized third party, also with headquarters in Germany, to minimize complexity.
    This paper adds to theoretical knowledge in the field by expanding on existing research in diversified areas and gives practitioners insights into why the premium automotive organization outsourced offshore, what the drivers were for backsourcing and subsequently, what the drivers were for outsourcing to a specialized organization.
    Original languageEnglish
    Title of host publicationProceedings of ASME 2013 International Mechanical Engineering Congress & Exposition
    Number of pages10
    PublisherAmerican Society of Mechanical Engineers
    Publication date2013
    Publication statusPublished - 2013
    EventASME 2013 International Mechanical Engineering Congress & Exposition - San Diego, CA, United States
    Duration: 13 Nov 201321 Nov 2013

    Conference

    ConferenceASME 2013 International Mechanical Engineering Congress & Exposition
    CountryUnited States
    CitySan Diego, CA
    Period13/11/201321/11/2013

    Bibliographical note

    IMECE2013-62707

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