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After two decades of massive off-shoring, does re-shoring represent the next credible strategy for western multi-national companies?

Petitjean, Vincent (2014) After two decades of massive off-shoring, does re-shoring represent the next credible strategy for western multi-national companies? Masters thesis, Dublin, National College of Ireland.

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With the emergence of globalization in the early 1980s, the business industry has drastically changed, and the business map been remodelled. Globalization, coupled with impressive technological progresses led the commercial world to be a much more competitive place than it used to be (Ellram, 2013). Since then, Multi-National Companies are making tremendous efforts to be cost efficient. This necessity to get the lowest costs drove companies to relocate part or all their operations overseas where wages were low: Off-shoring was born. Today, the trend for Multi-National-Companies is still to Off-shore massively, however if it was a very profitable strategy in the early 1980s, is it still the case today?

This dissertation will therefore seek to answer the following question: After two decades of massive Off-shoring, does Re-shoring represent the next credible strategy for western Multi-National Companies?

This paper is articulated around a few distinct sections. It will start with a literature review presenting the Re-shoring phenomenon, stating and comparing different point of views and presenting the status of the current research on this topic. The following part will be focusing on a synthesis and an analysis of the data collected during the interviews.

The method adopted to collect data is a qualitative approach, with semi-structured interviews. Four interviewees were selected based on their respective in depth knowledge of either Off-shoring or Re-shoring. Four main topics were discussed during the interviews: Cost Management, Supply-chain efficiency, Political involvement and Branding & Corporate image. The information collected was compared, discussed and linked to the main concepts highlighted in the literature review.
The results show that despite some ethical and political desires to bring jobs “back home” the Re-shoring phenomenon only represents a questionable advantage for MNCs, and a very marginal proportion of the number of jobs created in the “Off-shoring” countries.

The author of this dissertation considers in conclusion that, if Re-shoring appears to be a very noble concept, it does not globally represent (for the moment) the next credible alternative to Off-shoring.

Item Type: Thesis (Masters)
Subjects: H Social Sciences > Economics > Microeconomics > Production (Economic theory) > Industrial productivity > Labor productivity
Divisions: School of Business > Master of Business Administration
Depositing User: Claire Wallnutt
Date Deposited: 22 Nov 2014 09:57
Last Modified: 22 Nov 2014 09:57

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