Chair of Production Management

Outsourcing and Offshoring in Complex Product Development

Presentation by Ole Frauen (Volkswagen), Prof. Dr. Arnd Huchzermeier and Professor Jürgen Mihm (INSEAD)

On October 27, Ole Frauen, Volkswagen, gave a joint presentation with Prof. Dr. Arnd Huchzermeier and Prof. Jürgen Mihm (INSEAD) at the INFORMS Annual Meeting 2021 in Anaheim, California.

Title: Leveraging The Potential Of Outsourcing And Offshoring In Complex Product Development

Abtract: Leveraging the potential of outsourcing and offshoring remains a major challenge in complex product development. It is a question about effectively decomposing and distributing work across geographical and organizational boundaries while providing high quality products. The decisions must clearly depend on the product’s characteristics and the emerging collaborative network. The conducted study is based on an extensive data set involving all development projects of one of the largest car manufacturers worldwide. We demonstrate that a precise distinction between outsourcing and offshoring, as well as the introduction of a network perspective, are crucial to evaluate the effects in more detail.