This blog contains posts and comments written by students in Dr. Tufte's economics classes at Southern Utah University.
3/03/2005
Aerospace firms take to Offshoring
According to Chapter 7 in our Managerial Economics textbook, firms that do not look aboard for cheaper inputs face loss of competitiveness in the world markets and even in the domestic market. According to an article I found on the Network World Fusion webpage, aircraft manufacturers such as Boeing and Airbus are expecting to cut costs by sending some of their software development and engineering work offshore. With the airline industry continuing to struggle, these companies are expecting to increase cost efficiencies by 10 to 15 percent. Do you think Airbus and Boeing will save money by sending their software development programs overseas and do you think offshoring and outsourcing are smart moves for companies?
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1 comment:
Offshroring needs to be judged on a case by case basis. If the companies can save 10 to 15 percent in costs without losing 10 to 15 percent in production, then they are winners.
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