Offshoring At Acesco Medical Devices

Abstract

The medical device industry is highly profitable and projected to experience double digit growth well into the future. The five top performing American medical device companies offshore some core and non-core value chain activities to realize lower production costs, higher innovation, and faster time to market. This case examines the offshoring decision of Acesco Medical Devices - a medium-size company that produces neurology, orthopedics, and cardiovascular products. It considers the tradeoffs between corporate social responsibility, as it pertains to workforce reductions in the United Sates, and the substantial strategic benefits of offshoring to India.