Outsourcing problem...

[Razorfish]

Originally posted by jaguar
The second is that outsourcing is well known to be fraught with risks, working with Chinese businesses or anywhere in the 3rd world is a funny game, real wild-west stuff, I've had extensive experiences dealing with vietnamese political system over time, I can tell you, anything is possible. It means businesses are best working with someone who already has an established operation on the ground and being aware of these risks when they go in.

I just read something like this in Fortune magazine. Volkswagen outsourced their parts manufacturer to China. Not only did they have to bribe local officals to get the plant where they wanted it but they found out four years later that their plant manager had been stealing an entire car worth of parts almost every night since the beggining.

Outsourcing=lack of proper supervision. Hopefully business people will catch on to this.