The lingering effects of the pandemic, the return of Donald Trump, and the upcoming German election could lead to unpredictable changes in sourcing strategies.

And a growing chorus of voices is now pointing out the potential for reshoring and right-shoring.

Then, how to successfully implement right-shoring?

Why Now Is the Time to Rethink Your Sourcing Strategy 

Global supply chains have faced unprecedented disruptions in recent years: the lingering effects of the pandemic, a second Trump’s residency and changes in economic, energy and security strategies after Germany’s election. 

These challenges have exposed the vulnerabilities of sourcing exclusively from one country, making reshoring and right-shoring become business imperatives in 2025, which emphasizes diversification and resilience in supply chains.  

Finding The Answer For Right-Shoring

The answer lies in balancing risk, cost, and opportunity. Some will keep the status quo because the time and effort to source raw materials and production will take years or may jeopardize an important long-term strategic relationship. Others adopt a ‘country-plus-one’ approach, diversifying sourcing regardless of location.  

A common starting point, according to Carlos Mena, professor of supply chain management at Portland State University’s School of Business, is what he terms ‘China plus one’.  

China might be the main supplier, but businesses are now adding backup or secondary suppliers in other countries. These backups can quickly step in or increase production if there are supply disruptions or rising costs. Over time, these secondary suppliers often grow to become the primary source. 

For example, German companies are looking at alternative locations like Southeastern Europe, Vietnam, Sri Lanka, and Portugal. These places are becoming more attractive because they offer skilled workers, competitive outsourcing options, and less intense local competition. 

It’s easier said than done, so what steps should leaders take to successfully implement right-shoring? 

The Re-sourcing Strategy For Procurement Leaders 

To develop a different approach to sourcing? One answer is to be careful. This isn’t something to rush into without forethought.  

In short, right-shoring calls for careful consideration.  

Step 1: Set Objectives

Define the goals and areas of improvements — cost, quality, responsiveness, resilience, or sustainability. 

Step 2: Define Scope:

What key materials, categories, or vulnerabilities are you optimizing? Identify risks like political instability, overdependence, skill shortages, or supplier closures in your current sourcing model. 

Step 3: Evaluate Options:

Consider alternative countries and suppliers only after understanding your objectives and scope. 

Step 4: Plan and Execute:

Build a plan, prioritize criteria, execute with strong project management, and measure results. Adjust if goals aren’t met. 

To be sure, resourcing and switching partners is easier said than done. Carelessly changing the service provider in case of dissatisfaction is dangerous. Among other things, the term, follow-up costs and options such as multi-sourcing must be examined.  

In the upcoming newsletter, we will provide 10 pieces of advice on how to change outsourcing partners for success. 

The Path Forward: Discovering Vietnam as a Destination

For German companies seeking sustainable growth and flexibility, exploring Vietnam’s IT landscape could be a pivotal step toward a resilient, future-ready business strategy. Embracing Vietnam’s Embracing Vietnam’s dynamic, skilled talent pool and its geopolitical advantages not only mitigates risks but also opens doors to new opportunities, helping companies stay competitive in an evolving global market.  

For prompt assistance in navigating Vietnam’s IT outsourcing market, simply complete the form, and a CMC Global consultant will get in touch with you shortly!