What are the Limits to Outsourcing A Personal Response

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What are the Limits to Outsourcing ?A Personal
Response

• Craig McInnes
• MD, Atmel North Tyneside

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Think about it
Limits to Outsourcing ? Youre
Joking, Right ?
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Outsourcing Opportunitiesthe basics
If its Data, Analysis or Brawn, its Gone
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Why Outsource ?
Improve Corporate Focus, Free internal
Capabilities, Gain access to World Class Skills
Blah, blah, blah.
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We need to make stuffto survive
But, but, but, Research and Development, Design,
and Back-Room skills are all targeted at
sustaining manufacturing.
When you stop MAKING, You stop CREATING
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A Wealth of Nations
If a foreign country can supply us with a
commodity cheaper than we ourselves can make it,
better to buy it from them and combine it with
the products from our own industry in a way in
which we have some advantage
Adam Smith 1776, The Wealth of Nations
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What is our Regional Distinctive Competence ?
If a foreign country can supply us with a
commodity cheaper than we ourselves can make it,
better to buy it from them and combine it with
the products from our own industry in a way in
which we have some advantage Adam Smith , 1776
Key Points Our own Industry We have some
Advantage
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Regional Competitive Advantage ?
What defines our region ? What are we the best at
? What do we take a pride in ?
What is Our Industry ?
If we cannot convincingly answer today, we need
short term incentives with medium term
strategies to develop a competitive advantage
Regional Distinctive Competence attracts Inward
Investment.
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Make no mistake,It is protectionism
India, China, France, Germany, Singapore, et
al, All give generous Loans, Grants, and, Tax
Free Zones WITH Locked in Asset Management
You can have market access if you produce
locally. You can leave, but the Assets stay !!
Theyre in a War, Were in a Spin.
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The Future ?
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What are the Limits of Outsourcing ?
There are no Limits
Dont Kid Yourself
Waken Up, Smell the coffee
Get ready for the revolution