Re-evaluating China as Global Outsourcing Hub for Manufacturing

Abstract: Low-cost country sourcing strategy is one of the most appreciated sourcing strategies which added value to the organization through significant cost saving. To further explore the global sourcing strategies, organizations started outsourcing their manufacturing to a Contract Manufacturer or third party manufacturer in these countries for low cost manufacturing. Since 2005, China, India and Thailand have become the most ideal destination for manufacturing electrical and electronic appliances, equipment, metal products, packaging part production etc. These countries have often provided the most needed cost competitive advantages to the organization in the fiercely competitive market. However, the change in macroeconomic factors, intense competition, ever rising labor cost, and raw material cost in the developed regions, proved conducive for many multinational companies to find ideal sourcing opportunities in emerging regions like Mexico, Korea, Vietnam, Thailand, India, Brazil and Turkey.