Archive for December 2007

Malaysia Unfazed by ASian Outsourcing Rival

December 18, 2007

Malaysia, one of the rising outsourcing economies in South East Asia is not concerned with the emergence of the Philippines as a potential outsourcing rival.

There is no cause for concern since country is positioning itself to be a destination that offers high-value competencies. It’s focus will not be on low-end voice services that is predominant in the Philippines.

Bobby Varanasi, head of marketing and branding at Outsourcing Malaysia explains that, “growth comparisons in today’s outsourcing world are no longer undertaken at an industry level, but at a vertical level. Outsourcing Malaysia is a non-profit association representing Malaysia-based outsourcing services providers.

Malaysia has ambitions of becoming a one-stop outsourcing center for multinationals and upstaging current favorites in the Asian continent. Read more about this outsourcing development and other related topics at Sourcing Mag

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News: Pfizer to Outsource Some Manufacturing to Asia

December 5, 2007

A few days ago, Pfizer Inc, the world””s largest pharmaceutical manufacturer announced some of its plans for the future. The company has made plans to save money by outsourcing as much as 30 per cent of its manufacturing to facilities in India, China and other parts of Asia. This significant increase in outsourcing of manufacturing capabilities was announced at an investor presentation in Hong Kong.

Among the potential countries considered to take on the outsourcing tasks, China is considered to among the top choices. The problem however, is that the company will cutting 10 per cent of its global work force, or about 10,000 jobs i9n order to cut costs. Manufacturing sites in Brooklyn, New York and Omaha, Nebraska will be closed and a third manufacturing site in Feucht, Germany will be sold as part of the cost cutting measures.

Pfizer is also planning to make research and development spending expansions in China, India, Japan and South Korea. In fact, the company spent $7.6 billion on research and development last year. Asian researchers are currently doing 80 research studies for the major pharmaceutical company.

Officials from the company explained that these measures are aimed at coping with the challenges Pfizer is facing. The atent expiration of some drugs, rising competition from imitated drugs and risks from new drug R&D are all major threats to the company’s well being. Hopefully, the company will be able to use the money to discover new drugs that will help Pfizer recover.

This move will surely be meet with protest from those who will lose their jobs and from people who are opposed to the principle of outsourcing. On the other hand, Asia will benefit from the outsourcing jobs and will be a vital element in the growth of the company.