Reading file 7

Background

In these days of competition from It will be able to match the needs

rivals in low labour cost markets, of the client to the most suitable
more and more companies are manufacturer. It will also be there to
turning towards outsourcing their help with visits by the different parties,
production overseas in order to cut advise on costs and contracts, and
costs and remain competitive. For a troubleshoot when problems invariably
business to be lean and mean it has to arise.
decide what its core activities are and
concentrate on them. It can be helpful for the consultancy
to have its own, or other agents in
A star example of the benefits of the countries where the outsourcing
outsourcing is Dyson, founded occurs. They can keep an eye on
by designer and engineer James production and check that quality does
Dyson. He has produced and sold not slip. Where possible, firms should
his innovative and hugely successful only work with manufacturers who
bagless vacuum cleaner all around the have ISO9001 certification or better.
world. When he decided to relocate
production to Malaysia, he was Most low-cost manufacturers are found
heavily criticized for exporting British in the Far East and Latin America.
jobs, yet since then, Dyson has been However, EU manufacturers should
able to focus on its core activities of also consider relocating production to
design, marketing, and logistics. In new member states in Eastern Europe
fact, the firm now employs enough where labour costs have yet to catch
people in non-manufacturing jobs to up with those of the wealthier western
compensate for the loss of those that members. The supply chain is shorter
went overseas. and many of these manufacturers can
turn a job around in 48 hours.
The question is how other
manufacturers can enjoy the benefits Outsourcing to, for example, China or
of outsourcing and find reliable Thailand is best for long runs where
partners in low-labour cost countries. the length of the supply chain is not an
issue. Some jobs, however, should not
One way is to use the services of a be outsourced. These are short runs
consultancy specialized in this area. or special orders where time is of the
An established consultancy will have a essence. It is better if these continue
network of established manufacturers to be produced and assembled in the
that is able to make goods to high mother country. Where assembly
specifications. A consultancy worthy is concerned, they can use low-cost
of the name will have working components from overseas suppliers.
relationships with manufacturers
across a wide range of activities Outsourcing is not always popular
from producing fabrics and textile, as concerns over quality and service
to metal castings and the production prevail, but it is becoming self-evident
of the key components the client now that outsourcing has become
company desires. It will also undertake a necessity if companies are to
feasibility studies to see if outsourcing survive and prosper in this ever more
is a viable option. competitive world.

© Oxford University Press 2017 Business Result Second edition Upper-intermediate

 Reading file 7
Exercises
1 Work with a partner. Discuss these questions.
1 What kind of everyday activities does your business outsource?
2 How would you go about finding foreign partners that you could outsource
some of your work to?

2 Read the text quickly and answer these questions.

1 Why does the writer believe that outsourcing has become a necessity?
2 Who should businesses turn to, to help them find suitable business partners?

3 Read the text again and answer these questions.

1 Why does the writer use Dyson as an example?
2 How did many people feel when Dyson outsourced production?
3 What other jobs have been created in the place of manufacturing jobs?
4 What range of suppliers should a consultant be able to offer?
5 Why should consultants have agents and partners in outsourcing countries?
6 What guarantees of quality should outsourcers look for?
7 What kind of manufacturing benefits from outsourcing?
8 When shouldn’t Western European countries outsource beyond the EU?

4 Complete the sentences by solving the anagrams.

1 Perhaps we could have some of our made abroad. OCEMOPNTNS
2 We will continue to the appliances in the UK. AMSLSEBE
3 We need to decide how and practical it will be. ESIFABEL
4 Can you ask them to provide us with a of their work? APSMEL

5 Match 1–10 to a–j to form collocations from the text.

1 overseas a chain
2 high b partners
3 core c run
4 working d specifications
5 special e production
6 reliable f components
7 supply g suppliers
8 relocate h activities
9 long i relationship
10 key j order

6 Look back at the text and choose three words that you could use in your
day-to-day work.

7 Find these phrases in the text and work out what they mean from the
context.
1 lean and mean   2  survive and prosper

8 Work in small groups. Discuss these questions.

1 How moral is it for companies to outsource manufacturing jobs?
2 What responsibility does a company have for its employees? Are they more
important than the owner or shareholders?
3 What will people do if more and more jobs are outsourced?
4 What are the long-term dangers of outsourcing?

9 Organize a debate on this proposition. ‘This house believes that

outsourcing is the road to economic disaster.’ Make teams of people for
and against the proposition. Be prepared to speak for two minutes each.

© Oxford University Press 2017 Business Result Second edition Upper-intermediate