Center for the Study of Emerging Markets Explores
Project "Confronting Outsourcing
by Your Competition" researches how outsourcing works
and why so many companies are outsourcing goods and services
as well as how it affects the local Orange County economy
December 18, 2006 :: No. 101
Cal State Fullerton’s Center for the
Study of Emerging Markets is conducting a study on outsourcing
to expand on what the practice means for area businesses.
The project, “Confronting
Outsourcing by Your Competition,” is supported by the U.S. Department
of Education, which awarded $71,747 as first-year funding of a two-year grant.
outsourcing has emerged as one of the most compelling, important and misunderstood
issues in business today,” said Joseph Greco, center director. “Fears
and lack of information about foreign outsourcing affect the future expansion
of American international trade, especially in Southern California. Business
people, as well as students and teachers, are concerned.”
Greco points to
programs in Japan and India as examples of two different types of outsourcing.
India is part of a more traditional form, he explained, with American companies
turning to companies in India to serve as call centers for technical support
and medical information. In Nagoya, Japan, meanwhile, reverse outsourcing is
succeeding, noted Greco.
outsources lower-end jobs, while insourcing higher-end jobs,” said Greco.
Both cases are examples of successful models, he added. “What are they
doing that can be done here?”
Greco said that
the center will conduct an annual survey of Southern California firms, especially
members of the American Electronics Association of Orange County, to establish
what its members know about outsourcing, how many companies are outsourcing
and why. It will expand on a center survey conducted in 2004.
that business leaders and others have about outsourcing is tied to their lack
of information about what it is,” said Greco, noting that the Center
for the Study of Emerging Markets will be developing materials on outsourcing,
as well as making it available online, so that
members of the business community, as well as university students and faculty
members have access to the information.
want to know how outsourcing works and why so many companies are outsourcing
goods and services. They also want to know if it is good or bad for the United
States and how it affects the local Orange County economy and their future
jobs and careers,” said Greco. “Because of a lack of clear and
objective data, it’s a challenge to answer student questions on this
members of the high-tech business community want to know where to outsource,
how to compete effectively, whether it hurts their industry and how to find
local alternatives. This study, and the data we develop, will address those
concerns,” said Greco.
The center also
is partnering with universities in India to survey businesses in that country.
That survey will seek to determine the various elements contributing to what
makes those firms attractive for outsourcing.
are expected to be released in January during a gathering of the American Electronics
Association. Findings also will be posted on the Center for the Study of Emerging
The Center for
the Study of Emerging Markets, part of the university’s College of
Business and Economics, was established to promote the flow of global information
and technology between the academic and business communities. It serves as
a conduit to facilitate the interchange of ideas and inquiries among students,
academics and businesses.
Joseph Greco, director of the Center for the Study
of Emerging Markets, at 657-278-4125
McLaren of Public Affairs at 657-278-4852 or firstname.lastname@example.org
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