Question:-

What will be the likely impact, according to the article, of outsourcing in the tech industry? What will be the likely impact on electronics-sector companies like Solectron, Flextronics and Celestica?

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"Year of the Outsourcer," Business Week, January 8, 2001, Pete Engardio and Peter Burrows. Overview An expected slowdown in the overall demand for tech products is putting pressure on companies like Hewlett-Packard, Lucent, and Motorola to cut costs. One way to cut costs is "getting rid of factories." Outsourcing, a business method widely used by mass customizers like Dell Computer, also figures prominently in cost management for many companies.