A further insight into outsourcing and globalization has questioned
whether the former really is a magical solution in cases where businesses have
sought to benefit from lower unit labour costs in Eastern Europe and Asia
(Sweeney, 2005). It is argued that this has resulted in a shift away from
controlling the supply chain through ownership to one based on
management and control through effective supply chain relationship
management. In some cases, the outcome has been a disaster. In other cases,
particularly in clothing, textiles and hi-tech manufacturing, many companies
have gained significant benefits from outsourcing various supply chain
services. The key to success is to see outsourcing as part of an integrated
approach to managing the supply chain, a task that increasingly is best carried
out by one of the top tier of global logistics providers.