Product details

This case focuses on the issues and problems related to subcontracting of the manufacturing of IT (electronic) products by a European company (DELECON) to an Indian company (MISRACON). DELECON's goal is to go global in its market, subcontracting the manufacturing from various regions, whereas MISRACON's plan is to go international by trying to enter other countries through the subcontracting route. The various problems encountered in the interface of design-manufacturing and cultural diversities of the two companies such as; their differences in the expectations for quality standards; involvement of human resources; meeting of targets in cost and delivery and the speed to market and communication standards are examined in this case. The contract, starting with the objective of developing a long term partnership due to the perceived mutual strategic advantages, encounters problems due to some co-ordination and operational failures. This case was sponsored by the Indiana University CIBER Case Collection.