Outsourcing & Offshoring Industry Market Research

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Outsourcing & Offshoring OVERVIEW

    Outsourcing will be an approximately $548.5 billion global industry in 2016, with significant emphasis on 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, as opposed to outsourcing, covers such a wide variety of nations, products and practices that it is difficult to put a number on the size of the market.
     A significant share of offshoring revenue is created by contract manufacturing of electronics, including laptop computers, tablet computers, cellular telephones and items such as iPods.
     Another major sector in offshoring is contract manufacturing of shoes, apparel and accessories.
     Contract electronics manufacturing was estimated at $390 billion for 2016 by Plunkett Research.
     This market has changed dramatically over the past few years, as the demand for personal desktop consumers is weak as consumers more and more tend to use their smartphones as multipurpose devices, such as cameras, game players and music players. Offshore cost savings have become less advantageous, as wages and operating costs have been rising rapidly in the business and manufacturing centers of China and India.
     Leading offshore services providers, such as IT consulting giant Wipro, have been opening offices and making acquisitions in America and Europe—the locales of some of their leading customers—as these international firms become more global and mature in nature. A large portion of the


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