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Electronics Industry's Outsourcing Strategy Shifts to Include Design, Says TFI
December 3, 2002 |Estimated reading time: 1 minute
Alameda, Calif. -- As outsourcing in the electronics industry continues to develop as a key strategy, the types of companies to whom name-brand electronic-product companies outsource is shifting to include not only contract manufacturers who build products to the customer company's design but also to original design manufacturers (ODMs) who design the products as well as manufacture them.
ODM revenues will increase as a share of EMS revenues from about one-third in 2001 to nearly half in 2006. These and other trends will be released December 6, 2002, at Technology Forecasters Inc.'s Quarterly Forum for Electronics Manufacturing Outsourcing and Supply Chain in San Jose.
Revenues for the ODM model are boosted also by traditional EMS companies, such as Flextronics with its cell phone, entering the ODM market.
Technology Forecasters is including more ODM-focused sessions in its Quarterly Forum for Electronics Manufacturing Outsourcing and Supply Chain program. Last quarter's Quarterly Forum included a keynote speech by Arima Corp. North American President Greg Memo. Next quarter (March 6, 2003, at Varian Electronics Manufacturing in Tempe, Ariz.), the Quarterly Forum will include a panel discussion comprising several ODM executives.
At the December 6, 2002, Quarterly Forum for Electronics Manufacturing Outsourcing and Supply Chain in San Jose, Technology Forecasters will present "Electronic Manufacturing Outsourcing Report: Five-Year Forecast of EMS and ODM Industries by Market Sectors and Geographies," to look at the comparative growth and trends between these markets. Other sessions will include "Analysis of PCBA and Box Build within Outsourced Manufacturing," "Are We Outsourcing the Right Thing?" by TFI Senior Consultant Charlie Barnhart, and "Supply Network Collaboration: Maximize Profits by Collaborating Around a Single Product Record Across the Supplier Network," a panel discussion facilitated by Corporate Sponsor Agile Software. Agile also is the sponsor of the networking luncheon that day.
Technology Forecasters Inc. (TFI) is a strategic consulting firm helping OEM executives to improve outsourcing strategy, EMS executives to increase revenues and profitability, and suppliers of software, capital equipment and components to increase their share in the growing outsourcing markets. For more information, visit www.techforecasters.com.