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AN EXAMPLE OF
 OUTSOURCING
CIPSA
SITUATION
The head office of CIPSA is
located in Rubí (Barcelona).
(15 000 m²).
They started producing in
India (55 000 m²) and China
(8 000 m²) about six years
ago.
RUBÍ

CHINA   INDIA
OUTSOURCING FACTORS
They couldn’t compete with other companies.
                                 companies.

Their products were too expensive.
                        expensive.

Difficulties selling the products.
                         products.




                       SO...
SOLUTIONS:
       SOLUTIONS: India
They bought a company in India.

They produce a lot of products at low prices
there.
there.

This allows them to export all their products
around Europe.
SOLUTIONS:
      SOLUTIONS: China
In 2006 they wanted to export their products
around the world and also to other big and
important companies. But...
          companies. But...
    HOW?       WHAT?
               WHAT?          WHERE?
                              WHERE?




           outsourcing
They made a joint venture (association with a
manufacturer through technology) in China.
                     technology)


      work                  know how

In China, they created another company too.
                                       too.
Nowadays,
Nowadays, 44 other companies produce for
them.
them.
WHY DID THEY CHOOSE
          CHINA AND INDIA?

CHINA                         INDIA
•   Raw materials             •   Any type of products.
                                                products.
•   Any type of products.
                  products.   •   A lot of suppliers.
                                           suppliers.
•   High                      •   Low prices.
                                        prices.
•   quality of the            •   Low wages.
                                        wages.
    products.
    products.                 •   Qualified workers
•   A lot of suppliers.
             suppliers.       •   English
•   Good infrastructures.
           infrastructures.
•   Low prices.
         prices.
•   Disciplined workers.
                 workers.
CONCLUSIONS
They do outsoucing in order to be more
competitive in front of the other companies.
                                  companies.
They keep the I+D in Catalonia, so they are still
                       Catalonia,
a Catalan company.
Their products can be sofisticated but with
economical prices.
            prices.
They can export around the world.
                             world.

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CIPSA's Journey to Outsourcing Production Overseas

  • 1. AN EXAMPLE OF OUTSOURCING
  • 3. SITUATION The head office of CIPSA is located in Rubí (Barcelona). (15 000 m²). They started producing in India (55 000 m²) and China (8 000 m²) about six years ago.
  • 4. RUBÍ CHINA INDIA
  • 5. OUTSOURCING FACTORS They couldn’t compete with other companies. companies. Their products were too expensive. expensive. Difficulties selling the products. products. SO...
  • 6. SOLUTIONS: SOLUTIONS: India They bought a company in India. They produce a lot of products at low prices there. there. This allows them to export all their products around Europe.
  • 7. SOLUTIONS: SOLUTIONS: China In 2006 they wanted to export their products around the world and also to other big and important companies. But... companies. But... HOW? WHAT? WHAT? WHERE? WHERE? outsourcing
  • 8. They made a joint venture (association with a manufacturer through technology) in China. technology) work know how In China, they created another company too. too. Nowadays, Nowadays, 44 other companies produce for them. them.
  • 9. WHY DID THEY CHOOSE CHINA AND INDIA? CHINA INDIA • Raw materials • Any type of products. products. • Any type of products. products. • A lot of suppliers. suppliers. • High • Low prices. prices. • quality of the • Low wages. wages. products. products. • Qualified workers • A lot of suppliers. suppliers. • English • Good infrastructures. infrastructures. • Low prices. prices. • Disciplined workers. workers.
  • 10. CONCLUSIONS They do outsoucing in order to be more competitive in front of the other companies. companies. They keep the I+D in Catalonia, so they are still Catalonia, a Catalan company. Their products can be sofisticated but with economical prices. prices. They can export around the world. world.