Covidien will step up outsourcing, offshoring

Major medical device manufacturers continue to ramp up outsourcing as they face growing pressures to rein in costs of medical care.

In a recent example, Covidien this week filed notice of a restructuring plan with the Securities and Exchange Commission (SEC).

"The plan was developed to continue to drive efficiencies and improve the Company's cost structure," the SEC statement said. "The plan will focus on creating efficiencies by, among other things, reducing corporate expense, expanding the use of shared services in low-cost locations, outsourcing services where appropriate, streamlining the Company's organizational structure, consolidating manufacturing locations, consolidating and optimizing distribution centers and expanding low-cost country sourcing."...

Read more