Here is some more from the MITA presentation by Deloitte. From Deloitte's recent survey, the top six things companies are focusing on as they examine current overseas outsourcing or consider new opportunities are:
1. Local market inflationary measures (labor rate, utilities, etc.)
2. Changing customs and duties environment
3. Intellectual property leakage
4. Currency rate fluctuations
5. Oil price volatility (as an indicator of transportation costs)
6. Potential legislative impacts (including potential carbon regulations and other potential trade barriers)
When evaluating an overseas outsourcing strategy these are excellent things to consider. I would add contingency planning - what will you do if your supply line is disrupted? Also add inventory and cash flow impact of the longer supply line.
Make sure to touch all these bases as you consider your current and future position relative to overseas outsourcing.
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