What does the future hold for manufacturing outsourcing (OEMs) and outsourcing in general?
The future of outsourcing is going to be greatly influenced by the experiences of the companies willing to attempt such a relationship. While low-cost and low-strategic value forms of outsourcing will undoubtedly expand, high-cost and high-strategic value forms of outsourcing (such as an OEM relationship) simply have too much at stake to be undertaken on a whim. However, because of the added interaction among OEM Supplier – Purchaser partners that is currently in place with electronic means (internet, e-mail, information technology systems, etc.), the needed security for such relationships exists. The potential cost savings are now accompanied by measures to reduce the risk of achieving such savings. Thus, the propensity for a company to attempt an OEM Supplier – Purchaser relationship and succeed will most certainly continue to expand.