Outsourcing and Offshoring Explodes; Globalization Becomes the Norm, 6-28-2007
Outsourcing will be an approximately $450 billion global industry in 2007, with the largest portions created in three broad areas: 1) logistics, sourcing and distribution services, 2) information technology services, including the creation of software and the management of computer centers, and 3) business process outsourcing (BPO) areas such as call centers, financial transaction processing and human resources management. Offshoring, on the other hand, covers such a wide variety of nations, products and practices that it would be difficult to put a number on it. A significant share of offshoring revenue is created by contract manufacturing of electronics, laptop computers, cellular telephones and consumer electronics such as iPods. Another major sector in offshoring is contract manufacturing of shoes, apparel and accessories. Competition in the this industry is fierce and many changes have been affecting the landscape in this turbulent industry. Some examples are:
- Health Care Goes Offshore, Private Clinics Thrive in China and India.
Many people might assume that certain professions could never be outsourced, such as the work of health care professionals. This is apparently not true.
- Globalization: Explosive Growth in Offshore Apparel Manufacturing.
In a World Bank estimate, China could control close to 50% of the world's clothing market by 2010, significantly up from its 17% share in 2003.
- Many Industry Sectors Seek Consulting and Outsourcing Income, Competing with Pure Consultancies.
While the traditional leading firms in the consulting industry were busy in the early 2000s restructuring, picking up acquisitions or distancing themselves from the accounting profession, aggressive competitors have surfaced that create significant challenges. That is, leading manufacturers and service companies of many types now believe that they can affect significant growth by offering consulting services.
To find out more about these exciting trends and more, check out Plunkett's Outsourcing & Offshoring Industry Almanac 2008, just released, or go to www.plunkettresearch.com and sign up for a subscription to Plunkett's completely up-to-date online database!
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