CPH Post

Business

Companies beginning to return back to Denmark

Outsourcing is getting too pricey, inflexible and bad for business


Moving production far away may hurt business (Photo: Colourbox)

July 16, 2014
10:47

by AJ


Danish companies are giving up on outsourcing to low income countries and are moving production back to Denmark, Epn reports.

According to a survey asking 651 union representatives from Dansk Industri, three quarters of companies that have outsourced production to countries where wages are low, like China or India, have shifted jobs back home in the last year. 

Companies are responding as production in Denmark increases, competitiveness improves and politicians favour industry by lowering taxes and removing fees.

Danish researchers: Not worth outsourcing to China

Bad quality
Jan Stentoft Arlbjørn, a professor who specialises in supply chain management at the University of Southern Denmark, explained that not all companies that venture abroad are satisfied with their outsource provider.

"A substantial amount move production back because the quality suffers, the total costs are too high and it's too inflexible," he told Epn.

"Many find that when they outsource to somewhere far away, they become just another number in the line in the eyes of the provider, who may not prioritise Danish companies very highly if bigger customers come along." 

Outsourcing continues
Arlbjørn said he still expects Danish companies to keep outsourcing some tasks despite the recent trend to withdraw.

"It's primarily standardised products that can be shipped along with a clear blue print that will still be outsourced," he said.

"Customised productions that require more specifications and continuous dialogue between the buyer and seller will remain home."



Related stories



Latest Comments

FYI! If you need to go, and there's no public restroom in sigth, you have the...

(Jens Rost on January 27, 2015 16:55)

Let's also commemorate the ideological breeding grounds for the architects of...

(Lorenzo Luis Albano Farias on January 27, 2015 15:14)

Copy any waterpark in California, only then you`ll have something worth...

(Jon Paris King on January 26, 2015 21:10)

You sound really bitter and self righteous.

(Juliousbass "the Future of Bass" on January 26, 2015 21:03)

Hey... At least he is working harder than real Danish doctors. ; )

(Alex DeGre?t on January 26, 2015 20:37)

Thumps up all the way to you sir!

(Line Dalsgaard on January 26, 2015 20:16)

Could there have been an explosion in Santa's secret underground bunker?

(Jens Rost on January 26, 2015 19:43)

Finally! The stench alone coming from these things are pestering the suburban...

(Jens Rost on January 26, 2015 18:31)

Ya know..... normally I would count this as good news, but given the...

(Cliff Arroyo on January 26, 2015 13:06)

HI Friends... I could go through following comments, thank you for the...

(Swapnil D Tembhurne on January 26, 2015 11:14)