Food Engineering logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Food Engineering logo
  • NEWS
    • Latest Headlines
    • Manufacturing News
    • People & Industry News
    • Plant Openings
    • Recalls
    • Regulatory Watch
    • Supplier News
  • PRODUCTS
    • New Plant Products
    • New Retail Products
  • TOPICS
    • Alternative Protein
    • Automation
    • Cannabis
    • Cleaning | Sanitation
    • Cross-Functional Food Innovation
    • Fabulous Food Plants
    • Food Safety
    • Maintenance Strategies
    • OEE
    • Packaging
    • Sustainability
    • More
  • EXCLUSIVES
    • Plant Construction Survey
    • Plant of the Year
    • Sustainable Plant of the Year
    • State of Food Manufacturing
    • Top 100 Food & Beverage Companies
  • MEDIA
    • Podcasts
    • Videos
    • Webinars
    • White Papers
  • FOOD MASTER
  • EVENTS
    • Food Automation & Manufacturing Symposium and Expo
    • Industry Events
  • RESOURCES
    • Newsletter
    • Custom Content & Marketing Services
    • FE Store
    • Government Links
    • Industry Associations
    • Market Research
    • Sponsor Insights
    • Classified Ads
  • EMAGAZINE
    • eMagazine
    • Archive Issue
    • Advertise
  • SIGN UP!

To off-shore or not to off-shore

February 3, 2005
A strategy today that is gaining significant management attention is the off-shoring of work. Many companies have experimented with sending work overseas and a number of global companies have set up centers to execute work in countries that have lower wage rates or better availability of highly educated professionals. However, as seen in this past Presidential election, this subject is highly sensitive and political. Bill Wallisch, a senior consultant to major companies like General Mills and Coca-Cola, calls off-shoring "the big whisper. Everyone is talking about it, but in very sensitive and measured tones."

A number of companies have chosen to off-shore certain areas of their information, software development and support, benefits and financial services functions. However to date, the food manufacturing industry is taking a slow approach to off-shoring its engineering work. Several companies have trial projects underway with overseas engineering services firms-most in generic skills or administration areas. Others are experimenting with leveraging their own internal international structures to augment their US capabilities and gain some cost efficiencies. Another approach has been to leverage work completed by US engineering services firms by having work completed in their international offices, where rates are less than US offices. In fact, several large US engineering services firms have offices or joint ventures in Chile, Romania and other Eastern European countries, as well as India and China.

At this point, all of the food industry trials are reported to be in the evaluation stages. There is also a growing concern on the protection of food companies' intellectual property and operational efficiencies. Even when there are legal agreements in place, it may be difficult to keep the proprietary knowledge controlled in large organizations where the information can move instantly. Secondly, it is clearly understood that low rates do not translate into lower engineering costs if you cannot achieve the efficiencies and quality of the work. No one expects to see a short-term payback from off-shoring due to the startup/training/coordination costs and the resulting inefficiencies. The current estimates are for a three-to-five year payback over in-house engineering.

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • Bread going through conveyor belt in manufacturing plant.

    The State of Food Manufacturing in 2026

    Food and beverage manufacturers encounter significant...
    Food Safety
    By: Alyse Thompson-Richards
  • FE Top100 Food & Beverage Companies hero, gold lettering with black background.

    FOOD ENGINEERING’s 2026 Top 100 Food and Beverage Companies

    See where the world’s leading food and beverage companies...
    Top 100 Food & Beverage Companies
    By: Alyse Thompson-Richards
  • CJ Schwan’s Salina facility.

    Recipe for Growth: How CJ Schwan’s Powers Pizza Production with People and Automation

    Blending advanced automation with purposeful design, this...
    Plant of the Year
    By: Alyse Thompson-Richards
Manage My Account
  • eMagazine
  • Newsletter
  • Online Registration
  • Manage My Preferences
  • Customer Service

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Food Engineering audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Food Engineering or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • Illustration of businessman standing in the middle of a large scale, balancing between two green dollar signs at each end, one larger than the other. Blue background with very small white clouds.
    Sponsored by3-A Sanitary Standards, Inc.

    6 Questions: Before You Buy Food Processing Equipment

  • Construction crews use aerial lifts to install insulated wall panels inside an industrial facility.
    Sponsored byBurns & McDonnell

    Food Manufacturing’s Growth Calls for Integrated Project Delivery

  • Close-up of a group of freshly baked stuffed empanadas being transferred onto a conveyor belt.
    Sponsored byDorner

    Smarter Line Design Improves Food Manufacturing Efficiency and Throughput

Popular Stories

Maple Leaf Foods photo

Maple Leaf Foods to Consolidate Plant Protein Production

Smarties Mini

Nestlé Canada Invests $50M in Toronto Confectionery Factory

Illustration of businessman standing in the middle of a large scale, balancing between two green dollar signs at each end, one larger than the other. Blue background with very small white clouds.

6 Questions: Before You Buy Food Processing Equipment

An image of baked bread on a conveyor belt with text promoting the 2026 State of Food Manufacturing report.

Events

January 1, 2030

Webinar Sponsorship Information

For webinar sponsorship information, visit www.bnpevents.com/webinars or email webinars@bnpmedia.com.

View All Submit An Event

Products

Recent Advances in Ready-to-Eat Food Technology

Recent Advances in Ready-to-Eat Food Technology

See More Products
Promo for the 2027 Plant of the Year Award


CHECK OUT OUR NEW ESSENTIAL TOPICS

Alternative Protein Automation Cleaning/Sanitation Fabulous Food Plants

Food Safety Maintenance Strategies OEE

Packaging Sustainability

Related Articles

  • Steam Whistle Brewing launches MTV Hard Seltzer Juicy Shore

    Steam Whistle Brewing launches tropical ready-to-drink MTV Hard Seltzer Juicy Shore

    See More
  • New dietary guidelines released

    Candy companies pledge not to advertise to children under 12

    See More
  • To label or not to label?

    See More

Related Products

See More Products
  • download.jpg

    Recent Advances in Ready-to-Eat Food Technology

  • ready to eat.webp

    Recent Advances in Ready-to-Eat Food Technology

  • GlobalData_logo_blue_header.png

    USA: Food & Grocery - Market Shares, Summary & Forecasts to 2023

See More Products
×

Elevate your expertise in food engineering with unparalleled insights and connections.

Get the latest industry updates tailored your way.

JOIN TODAY!
  • RESOURCES
    • Advertise
    • Contact Us
    • Food Master
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • Newsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2026. All Rights Reserved BNP Media, Inc. and BNP Media II, LLC.

Design, CMS, Hosting & Web Development :: ePublishing