Too many short sighted CEO's see outsourcing as the panacea to drive down costs. Rethinking this strategy is Farouk Shami, CEO of a one billion dollar hair iron company. Citing counterfeiting problems and poor quality control, he is opening a plant to manufacture all of his company's production in TX. New Balance continues to assemble the majority of their shoes in MA. Of course how many NBA and NFL players endorse New Balance compared to Nike? Many times outsourcing brings problems with quality control or impacts company reputation, such as Dell's poor customer service scores. Once the decision to move some operations offshore takes into consideration factors other then monetary costs,the decision becomes more complex.
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