As companies face an
increasingly competitive marketplace and strive to effectively manage the
shrinking product lifecycle, the outsourcing of none-core manufacturing
applications has become an important strategy.
Companies are learning that in
order to gain a competitive edge it is necessary to keep ahead of change.
“Today’s customers want rapid results, expecting service excellence and
demanding a broad understanding of increasingly complex technological changes,
products and services,” said Murton System Technologies MD Brent Maurer.
The electronics outsourcing
industry, estimated to have been worth $100-billion in the US in 1998, and
valued at more than double that today, is growing at over 20% annually. In
the process of doing so, the industry is becoming an increasingly larger portion
of the electronics industry, representing over 21% of the total industry.
“Both large and small
companies are grappling with how best to meet expanding demand, address
increasingly tighter product time-to-market and stay ahead of technology
obsolescence. Some have found a solution in outsourcing in areas ranging
from improving products and services to reducing debtors and stock.
KPMG, in a survey in
association with Africon says outsourcing-manufacturing services allows
companies to focus on product development and design, marketing and customer
needs. It is more a key component of modern business philosophy. The
virtual company of tomorrow will be built out of today’s outsourcing
experience. Those getting it right are ahead of the game. Those
getting it wrong will not be in business, it's that simple.
Research has estimated that
some form of "outsourcing" - handing over part of your operations to
an outside contractor - is used by up to 85% of British firms. In other regions
of Europe less than 25% of business outsource their non-core functions.
It is expected that over the
next 24 months the top 10 companies in each US major industry will be seriously
considering expanding their outsourcing. Companies are increasingly
looking at how they can add value to their businesses and today’s customers
want access anytime from anywhere and a one-call solution provider,” said
"Many markets are still
going through a period of education and have a way to go. Nonetheless, some have
woken up and there are some great opportunities out there,” he concluded.