Study On Outsourcing Strategy For ADD Company

Along with global economy’s high speed development, the new rising businessmode which can integrates and optimizes resource in worldwide has been accepted bymore and more companies and recent decade was a highly developing period. In orderto survive and develop better in the serious competition environment, companies haveto improve the core competitiveness and optimize all possible resource. Under thesituation, outsourcing is being selected by more companies and the detailed modes、scope and product type also has new breakthrough.ADD is multinational IT Company who’s HQ locating in California of US. Itprovides internet service and solution that mainly produces SAN products. From2004,ADD begun to take use of outsourcing and cooperated with a famous subcontractor inShenzhen and set up a Shenzhen operation HQ to handle Asia Pacific supplier chainmanagement. During the two years2007to2009,in order to search for newdeveloping and sales revenue increasing except for original professional field, ADDbought two companies to extend product field. However, new companies causingmore subcontractors is driving ADD more urgent to study outsource strategy, becauseit will effect whole ADD products cost and enterprise competitive power even impactthe acquisition successful or failed.Through several months’ cooperation after buying the two companies, it is foundthat the bought two companies have entirely different philosophy and process ofsupplier chain management from ADD company, which is a high risk to ADD whohas had all production outsourcing originally. If these cannot be integrated well, it willinfluence ADD product’s quality、delivery and cost even Impact Company’s healthydevelopment. By the way, there are many failed cases about purchasing a company astwo company culture and process cannot integrated well, for example: TCLpurchasing Tomson and Hai’er purchasing Meitai and so on. Hence, outsourcingrelevant theories will be studied in this article based on ADD real situation includinghow to figure out outsourcing strategy based on company strategy, how to selectoutsourcing supplier and supplier management based on outsourcing strategy,providing outsourcing low cost evaluating methods, outsourcing risk and riskmanagement.