Marius GAL, Claudiu V. KIFOR


The scope of this paper is to present the reasons why an automotive company, in the context of global market, should do offshoring for its Research and Development department or its software departments. Also this paper reviews what has been written until now regarding the offshoring process. It will present the motives why a company did the offshoring process, how a country and a region should be selected based on certain criteria. Here are presented the biggest four categories of reasons why a big company is starting or expanding the internationalization.  Advantages and disadvantages are presented, in order to know both the advantages and the potential risks. In most of the studies, the offshoring is discussed from the manufacturing point of view, but these valuable lessons can be applied to the software or IT department from a car maker. Strategic options are presented to have a clear view about how to approach this process. The main method used in this article is the qualitative research on what other authors have written until now. The goal of this paper is to present why and how offshoring can help a company from the automotive sector to reduce the costs and to obtain a higher quality in the final products.

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