How and why communications industry suppliers get “squeezed out” by outsourcing: cases, impact and the next phases
The communications systems,terminals,and service, industries, have undergone over the past ten years a significant technological internal evolution and external revolution at customer end (such as shifting to IP, wireless 3G and LTE evolutions, new terminals, broadband...). Very little management research has studied their survivability irrespective of changes in demand volumes, due to technological sourcing and outsourcing practices driven by other global industries serving as predators in view of the huge business potential of communications products and services. These other industries include computing software, semiconductor and contract manufacturing industries, many of with roots in emerging countries. This paper analyzes the implications of using in-sourced genuine non-proprietary open communications standards , of the wider use of in-sourced /purchased technologies ,and of outsourced contract manufacturing . The methodology used is equilibrium analyses from case analysis data. They show a trend towards active or passive knowledge leakage. Three specific areas will be mentioned as examples .The paper also shows the processes how eventually those industries in a later cycle bounce back.
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- Tamura, Robert, 2002. "Human capital and the switch from agriculture to industry," Journal of Economic Dynamics and Control, Elsevier, vol. 27(2), pages 207-242, December.
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