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Global sourcing - what's a mid-market process manufacturer to do?

The last couple of years have shown an increased awareness of global sourcing from mid-market process manufacturers.  Yet few have fully embraced the benefits to the extent that Hercules did in 2006 when it outsourced and offshored large portions of its infrastructure, IT and back office operations.  Given the inherent value of lower overall cost, a reduced fixed cost ratio and increased operational flexibility - especially in a highly cyclical industry - it begs the question why.

Two main concerns have become apparent; 1) difficulty in showing significant cost reduction with a smaller operation, and 2) a concern that mid-market customers will not receive high levels of customer service from large offshore service providers.

Strides have been made to address the need for a stronger cost benefit to smaller operations through shared services offerings - but for large service providers who are serious about the mid-market the challenge remains to convince prospective customers and advisory firms that they will not be treated with less care and attention.

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