an example of outsourcing: cipsa

AN EXAMPLE OF AN EXAMPLE OF

OUTSOURCINGOUTSOURCINGOUTSOURCINGOUTSOURCING

CIPSACIPSA

SITUATIONSITUATION

�� The head office of CIPSA is The head office of CIPSA is located in located in RubíRubí (Barcelona). (Barcelona). (15 000 m²).(15 000 m²).

�� They started producing in They started producing in India (55 000 m²) and China India (55 000 m²) and China India (55 000 m²) and China India (55 000 m²) and China (8 000 m²) about six years (8 000 m²) about six years ago. ago.

RUBÍRUBÍ

CHINACHINA INDIAINDIA

OUTSOURCING FACTORSOUTSOURCING FACTORS

�� TheyThey couldn’tcouldn’t competecompete withwith otherother companiescompanies..

�� TheirTheir productsproducts werewere tootoo expensiveexpensive..

�� DifficultiesDifficulties sellingselling thethe productsproducts..

�� SO...SO...

SOLUTIONSSOLUTIONS: India: India

�� TheyThey boughtbought a company in India.a company in India.

�� TheyThey produceproduce a lot of a lot of productsproducts at at lowlow pricespricestherethere..therethere..

�� ThisThis allowsallows themthem to to exportexport all all theirtheir productsproductsaroundaround Europe.Europe.

SOLUTIONSSOLUTIONS: China: China

�� In 2006 In 2006 theythey wantedwanted to to exportexport theirtheir productsproductsaroundaround thethe worldworld and and alsoalso to to otherother bigbig and and important important companiescompanies. . ButBut......

HOW? HOW? WHATWHAT? ? WHEREWHERE??HOW? HOW? WHATWHAT? ? WHEREWHERE??

outsourcingoutsourcing

�� TheyThey mademade a a jointjoint ventureventure ((associationassociation withwith a a manufacturer manufacturer throughthrough technologytechnology) in China.) in China.

�� workwork know howknow how

�� In China, In China, theythey createdcreated anotheranother company company tootoo. . NowadaysNowadays, 44 , 44 otherother companiescompanies produceproduce for for themthem..

WHY DID THEY CHOOSE WHY DID THEY CHOOSE

CHINA AND INDIA?CHINA AND INDIA?

CHINA•• RawRaw materialsmaterials•• Any Any typetype of of productsproducts..•• HighHigh

INDIA•• Any Any typetype of of productsproducts..•• A lot of A lot of supplierssuppliers..•• LowLow pricesprices..•• HighHigh

•• qualityquality of of thetheproductsproducts. .

•• A lot of A lot of supplierssuppliers..•• GoodGood infrastructuresinfrastructures..•• LowLow pricesprices..•• DisciplinedDisciplined workersworkers..

•• LowLow pricesprices..•• LowLow wageswages..•• QualifiedQualified workersworkers•• EnglishEnglish

CONCLUSIONSCONCLUSIONS

�� TheyThey do do outsoucingoutsoucing in in orderorder to be to be moremorecompetitivecompetitive in front of in front of thethe otherother companiescompanies..

�� TheyThey keepkeep thethe I+D in I+D in CataloniaCatalonia, so , so theythey areare stillstilla Catalan company. a Catalan company.

TheirTheir productsproducts cancan be be sofisticatedsofisticated butbut withwith�� TheirTheir productsproducts cancan be be sofisticatedsofisticated butbut withwitheconomicaleconomical pricesprices..

�� TheyThey cancan exportexport aroundaround thethe worldworld. .