2003
High value to customer: relocating products and processes for cost cutting is only a short-term solution
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December 2003
Companies which deliver value for their clients and escape the cost-cutting spiral are also achieving higher profits in the long run.
The issue of high labour costs affects all firms in Germany. German customers, competitors and suppliers are experiencing greater cost competitiveness from equivalent or emerging economies: domestic companies are struggling in the battle to create products of the same quality at lower prices.
Though greater efficiencies might justify high German labour costs, cost cutting is still the popular reaction - achieved by more efficiency at existing production sites, or by relocating products and processes to low-cost countries. This offers short-term saving potentials - but they also disappear shortly: each new cost-saving move has a diminishing impact.
Consequently, finding creative new solutions, identifying higher value goods and services, becomes a key success factor for companies with domestically located operations.
- This is a summary of the full German text, which is available by selecting 'Deutsch' in the language selector window above.
For more information, please contact:
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| Karsten Gross |
| PA Consulting Group |
| Fürstenbergerstrasse 3-9 60322 Frankfurt am Main |
| Frankfurt |
| 60322 |
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Tel: +49-69-71 70 22 93 |
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Fax: +49 69 71 70 22 99 |
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E-mail:
karsten.gross@paconsulting.com |
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Notes to editors
PA: delivering value
PA Consulting Group is a leading management, systems and technology consulting firm. Operating worldwide in more than 35 countries, PA draws on the knowledge and experience of 3,000 people, whose skills span the initial generation of ideas, insights and solutions all the way through to detailed implementation.
PA focuses on creating benefits for clients rather than merely proposing them. Our work is founded on powerful insights into our clients' issues, and in the private sector in particular, on the need to deliver superior shareholder returns. We help accelerate business growth by developing innovative products for our clients and by the application of emerging technology. We deliver major transformation programs, mobilize human resources, and manage complex IT and technically challenging programs.
PA's results-focused approach is founded on a unique commitment to excellence, value and independence:
Excellence. We are committed to unremitting excellence and quality in every aspect of our work: in our relationships with our clients, in the client assignments we deliver, and in the people we recruit and develop, who enjoy exciting and rewarding careers at PA.
Value. PA's consultants bring an intense focus on delivering value through deep industry insight, the development and application of technology, and our culture of respect, collaboration and flexibility in working with clients.
Independence. PA is independent of outsourcing, software, hardware and audit providers. We are the pre-eminent client-side advisor on IT and outsourcing projects, and deliver, in partnership with our clients, business solutions tailored to our clients' needs, rather than solutions pre-determined by commercial alliances. As an employee-owned company, we are answerable to our clients and to ourselves only.
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