Outsourcing the Production

Currently an increasing number of small and medium-sized enterprises (SME) is facing the challenge of seeking cost saving opportunities by shifting their production to foreign (low cost) countries. This trend is strengthened by the desire to offer a high service level to global customers on a local basis. In the majority of cases a lack of know-how, financial, and human resources hinders the establishment of an own production abroad by the SME. Outsourcing of manufacturing processes or utilizing joint ventures with foreign enterprises might be applicable solutions. However, the fear of product counterfeiting or plagiarism keeps most of the SME from expanding internationally. In order to assure an effective protection against the aforementioned issues SME have to identify their core competencies and develop capable safety measures.