Hansen, Zaza Nadja Lee

Simplay, Steve

This paper will investigate the drivers behind why automotive organizations move product development work from high-cost countries to low-cost countries and the challenges and benefits they face when globalizing their product development model. This paper will provide a literature review of this area and present a case study of a global multinational premium automotive organization with headquarters in Germany. The findings showed that an outsourced offshore delivery center is multi-dimensional and difficult to manage when faced with such complexity.The case company decided to outsource again to a specialized third party, also with headquarters in Germany, to minimize complexity.This paper adds to theoretical knowledge in the field by expanding on existing research in diversified areas and gives practitioners insights into why the premium automotive organization outsourced offshore, what the drivers were for backsourcing and subsequently, what the drivers were for outsourcing to a specialized organization.<br/

What has led the automotive industry to offshore engineering services to low cost countries?

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