the world is flat ( 世界是平的 ) (thomas friedman)

ProcurementProcurement 11

The World is FlatThe World is Flat (( 世界是平的世界是平的 ))

(Thomas Friedman)(Thomas Friedman)


OutsourcingOutsourcing: : An “easy way” to An “easy way” to increase profitsincrease profits


Case Case ― Positive― Positive11

NikeNike– Outsources almost all of its manufacturing Outsources almost all of its manufacturing

activitiesactivities– Focuses mainly on Focuses mainly on research and research and

developmentdevelopment on the one hand, and on the one hand, and marketing, sales, and distributionmarketing, sales, and distribution on the on the otherother

– Growth in the 90s at an annual rate of Growth in the 90s at an annual rate of about 20 percentabout 20 percent


Case Case ― Positive― Positive22

CiscoCisco– Global virtual manufacturing strategyGlobal virtual manufacturing strategy– Quadruple in size from 1994 to 1998Quadruple in size from 1994 to 1998

Apple ComputerApple Computer– Outsources 70 percent of its componentOutsources 70 percent of its component– Focused its internal resources on its own Focused its internal resources on its own

disk operating systemdisk operating system and the and the supporting supporting macro softwaremacro software


Case Case ― Negative― Negative11

NikeNike– 2001, profit shortfall due to 2001, profit shortfall due to inventory inventory

buildupbuildup in some products, in some products, shortagesshortages for for others as well as others as well as late deliverieslate deliveries

– ReasonReasonWeak U.S. economyWeak U.S. economy

Complications with the implementationComplications with the implementation of a of a supply planning systemsupply planning system


Case Case ― Negative― Negative22

CiscoCisco– 2000, 2.25 billion write-down for obsolete 2000, 2.25 billion write-down for obsolete

inventoryinventory– ReasonReason

A significant reduction in demand for A significant reduction in demand for telecommunication infrastructure to which telecommunication infrastructure to which Cisco was not able to respond effectivelyCisco was not able to respond effectively

Apple ComputerApple Computer– 1999, the ability to satisfy customer 1999, the ability to satisfy customer

demand was significantly reduceddemand was significantly reduced– ReasonReason

Shortages in the G4 chip supplied by MotorolaShortages in the G4 chip supplied by Motorola


OutlineOutline

Outsourcing benefits and risksOutsourcing benefits and risks

A framework for buy/make decisionsA framework for buy/make decisions

E-procurementE-procurement

A framework for e-procurementA framework for e-procurement


Outsourcing BenefitsOutsourcing Benefits

Economies of scaleEconomies of scale reduce manufacturing reduce manufacturing costscosts

Risk poolingRisk pooling – demand uncertainties are – demand uncertainties are transferredtransferred

Reduced capital investmentReduced capital investment

Focus on core competenciesFocus on core competencies

Increased flexibilityIncreased flexibility– 較佳的回應顧客需求改變的能力較佳的回應顧客需求改變的能力– 利用供應商的技術來加快產品研發週期時間的能力利用供應商的技術來加快產品研發週期時間的能力– 獲得新技術及創新的能力。獲得新技術及創新的能力。


案例案例自助餐廰的滷蛋自助餐廰的滷蛋……

西餐廳的麵包西餐廳的麵包……

汽車廠的輪胎汽車廠的輪胎……

腳踏車變速器腳踏車變速器……

KK 牌腳踏車牌腳踏車――只有車架自行生產只有車架自行生產……

有有 DolbyDolby 最動聽最動聽……


Outsourcing RisksOutsourcing Risks

Loss of competitive knowledge Loss of competitive knowledge – 將重要組件委外給供應商，就等同於給競爭者機會將重要組件委外給供應商，就等同於給競爭者機會

(( 一如一如 IBMIBM 的例子的例子 ))

– 公司失去公司失去 100%100% 以自己的想法去導入新設計的能力，以自己的想法去導入新設計的能力，而亦須參酌供應商的想法而亦須參酌供應商的想法

– 將重要組件委外給不同的供應商，也就失去了一些將重要組件委外給不同的供應商，也就失去了一些傳統上必須團隊合作才可行的發展，如新的想法、傳統上必須團隊合作才可行的發展，如新的想法、創新及整體解決方案等。創新及整體解決方案等。

Conflicting objectivesConflicting objectives – Flexibility (Flexibility ( 例如例如，， JIT) vs. long-termJIT) vs. long-term 、、 stable stable

commitments, etc.commitments, etc.


A Framework for OutsourcingA Framework for Outsourcing11

(Fine and Whitney)(Fine and Whitney)

Reasons for outsourcingReasons for outsourcing– Dependency on capacityDependency on capacity

企業本身具有製造組件所必須的專業知識及技巧，因為其企業本身具有製造組件所必須的專業知識及技巧，因為其他的因素而決定委外。他的因素而決定委外。

– Dependency on knowledgeDependency on knowledge企業並沒有製造產品或組件所必要的人員、技術及專業知企業並沒有製造產品或組件所必要的人員、技術及專業知識，故將其委外以補其不足。即使如此，企業仍需具備評識，故將其委外以補其不足。即使如此，企業仍需具備評估顧客需求的技巧和知識，並將之轉換為產品應有的主要估顧客需求的技巧和知識，並將之轉換為產品應有的主要特徵及要求。特徵及要求。

Product architectureProduct architecture– Modular productsModular products –independent components –independent components– Integral productsIntegral products – components are tightly related – components are tightly related




Modular productsModular products –independent –independent componentscomponents– Components are Components are independent independent of each of each

otherother– Components are Components are interchangeableinterchangeable– Standard interfacesStandard interfaces are used are used– A component can be A component can be designed or designed or

upgradedupgraded with with little or no regard to other little or no regard to other componentscomponents

– Customer preference determines the Customer preference determines the product configurationproduct configuration




Integral productsIntegral products – components are – components are tightly relatedtightly related– Designed as a Designed as a systemsystem– Not off-the-shelf componentsNot off-the-shelf components– Evaluated based on Evaluated based on system performancesystem performance– Components in integral products Components in integral products perform perform

multiple functionsmultiple functions


A Framework for OutsourcingA Framework for Outsourcing44 (Fine & Whitney)(Fine & Whitney)

ProductProduct Dependent:Dependent:knowledge, knowledge, capacitycapacity

Indep:Indep:

knowledgeknowledgeDep: capacityDep: capacity

Indep.:Indep.:

knowledgeknowledgecapacitycapacity

ModularModular OutsourcinOutsourcing riskyg risky

Outsourcing Outsourcing opportunityopportunity

Outsourcing Outsourcing can reduce can reduce costcost

IntegralIntegral OutsourcinOutsourcing very riskyg very risky

Outsourcing Outsourcing optionoption

Keep Keep internalinternal


案例案例TOYOTATOYOTA– 70%70% 的零組件委外的零組件委外……– 引擎引擎―― 100%100% 自製自製– 汽車電子系統汽車電子系統――由供應商設計並製造由供應商設計並製造 (( 依賴產依賴產

能與知識能與知識 ))

IBMIBM– CPUCPU 委外委外……– 作業系統委外作業系統委外……


Procurement process is highly complex, requires significant expertise, and is very costly.


電子市集是最後綠洲？電子市集是最後綠洲？


E-Marketplaces: The Initial (95-E-Marketplaces: The Initial (95-99) business model99) business model

The e-marketplace concept started as a new The e-marketplace concept started as a new way to procure products, particularly non-way to procure products, particularly non-production items. E-marketplaces production items. E-marketplaces – Expand everyone’s Expand everyone’s market reachmarket reach– Generate Generate lower price for the buyerslower price for the buyers– Cut operational costsCut operational costs for buyers and suppliers for buyers and suppliers

Automating the procurement process will Automating the procurement process will reducereduce processing cost per orderprocessing cost per order from as from as high as high as $150 to$150 to as low as as low as $5 per order$5 per order– Focus on liquidityFocus on liquidity– Transaction fee paid by the suppliersTransaction fee paid by the suppliers– Serve as a virtual distributorServe as a virtual distributor


The value of e-marketsThe value of e-markets

提供了採購流程的專業知識及大量的供提供了採購流程的專業知識及大量的供應商應商做為買家及供應商之間的媒介做為買家及供應商之間的媒介找出節省成本的機會找出節省成本的機會在拍賣喊價的過程中增加自己供應商的在拍賣喊價的過程中增加自己供應商的資料庫資料庫找到供應商，確認其是否合乎自己的需找到供應商，確認其是否合乎自己的需求，並給予必要的支援。求，並給予必要的支援。代為處理拍賣、出價事宜。代為處理拍賣、出價事宜。


The Move to B2B CommerceThe Move to B2B Commerce


2003$1.3 Trillion

2003$1.3 Trillion

2002$843B2002

$843B

2001$499B2001

$499B

2000$251B2000

$251B

1998$43B1998$43B

Business-to-Business

Source: Forrester Research, Inc.

1999$109B1999

$109B

Business-to-Consumer

B2B is Huge...B2B is Huge...


Continuous evolution of the Continuous evolution of the business modelbusiness model11

Transaction feesTransaction fees (paid by either the buyer, (paid by either the buyer, the suppliers, or both.)the suppliers, or both.)– Problems with this Business ModelProblems with this Business Model

Sellers resist paying a feeSellers resist paying a fee to the company to the company whose main objective is to reduce the whose main objective is to reduce the purchase pricepurchase priceBuyers resist paying a feeBuyers resist paying a feeThe revenue model needs to beThe revenue model needs to be flexible flexible

– Sometimes the wrong party is chargedSometimes the wrong party is chargedLow barriers to entryLow barriers to entry created a fragmented created a fragmented industry flooded with participantsindustry flooded with participants

– Just in the chemical industry there were Just in the chemical industry there were about 30 e-markets about 30 e-markets


Continuous evolution of the Continuous evolution of the business modelbusiness model22

Subscription feesSubscription fees ( ( 會員費會員費 ))– 電子市集依照公司大小、使用系統的員工人電子市集依照公司大小、使用系統的員工人

數及成交筆數，作為向會員收取費用的依據數及成交筆數，作為向會員收取費用的依據Licensing the softwareLicensing the software– 指的是市集將其軟體授權給企業使用，讓企指的是市集將其軟體授權給企業使用，讓企

業可以透過軟體自動連上市集業可以透過軟體自動連上市集


Evolving Market Types Evolving Market Types ―― Value-added independent ( public) Value-added independent ( public)

e-marketse-markets

They are expanding their value They are expanding their value proposition by offering addition proposition by offering addition services such as services such as inventory inventory managementmanagement and and financial servicesfinancial services (Zoho); (Zoho); supply chain planningsupply chain planning (Covisint (Covisint ，， e2opene2open))


Consider Consider InstillInstill Corp. Corp.

Instill.comInstill.com focuses on the focuses on the food service food service industryindustry and provides an infrastructure and provides an infrastructure which links together operators, i.e., which links together operators, i.e., restaurants, distributors and restaurants, distributors and manufacturersmanufacturers. This e-marketplace . This e-marketplace provides value to its customers by provides value to its customers by offering offering not onlynot only procurement services procurement services, , but also but also forecastingforecasting, , collaborationcollaboration and and replenishment replenishment tools.tools.


Evolving Market Types ―Evolving Market Types ― Private e-MarketsPrivate e-Markets

Valuechain.Dell.com (Dell), eHub Valuechain.Dell.com (Dell), eHub (Cisco)(Cisco)

IBM, Sun Microsystems and Wal-MartIBM, Sun Microsystems and Wal-Mart

台塑網電子商務台塑網電子商務These companies use the marketplace These companies use the marketplace to to improve supply chain collaborationimprove supply chain collaboration – Providing suppliers with demand Providing suppliers with demand

information and production datainformation and production data


Evolving Market Types ―Evolving Market Types ― Consortia-based e-marketsConsortia-based e-markets

Covisint (Covisint (automotiveautomotive―GM―GM ，， Ford Ford MotorMotor ，， DaimlerChrylerDaimlerChryler ，， RenaultRenault ，， NissanNissan ，， MitsMitsbishibishi ，， Peugeot…Peugeot…); Trade-Ranger (oil); Omnexus ); Trade-Ranger (oil); Omnexus (chemicals); e2Open and Converge (high-tech)(chemicals); e2Open and Converge (high-tech)聯盟型電子市集和公開電子市集相似，差別在於公開電子聯盟型電子市集和公開電子市集相似，差別在於公開電子市集為獨立經營，聯盟型是由同一產業內的數家公司所聯市集為獨立經營，聯盟型是由同一產業內的數家公司所聯合建立．合建立．ObjectiveObjective of the consortia is of the consortia is– Aggregate activities and use the buying powerAggregate activities and use the buying power of consortia of consortia

membersmembers– Provide suppliers with standard systemsProvide suppliers with standard systems that that support all support all

buyersbuyers and allows and allows suppliers to reduce costsuppliers to reduce cost


Evolving Market Types ―Evolving Market Types ―

Content based e-marketsContent based e-markets11

Integrating catalogsIntegrating catalogs from many from many industrial suppliers. To industrial suppliers. To achieve achieve scalescale and and increase efficienciesincrease efficiencies, , cntent-based e-markets cntent-based e-markets unify unify suppliers’ catalogssuppliers’ catalogs and and provide provide effective tools for searching and effective tools for searching and comparing suppliers’ products.comparing suppliers’ products.

物流電子交易市集物流電子交易市集


Evolving Market Types ―Evolving Market Types ―

Content based e-marketsContent based e-markets22

First focusFirst focus– Maintenance, Repair and Operations Maintenance, Repair and Operations

(MRO)(MRO) goods goodsThese are components that are not part of the These are components that are not part of the finished product or the manufacturing process finished product or the manufacturing process but are essential for the businessbut are essential for the business

Examples include lighting, office supply, Examples include lighting, office supply, fasteners,…fasteners,…

Second focusSecond focus– Industry-specific productsIndustry-specific products


E-marketplace ExamplesE-marketplace Examples

Private TradingExchanges (PTX)

Independent VerticalExchanges (IVX)

Independent HorizontalExchanges (IHX)

Consortia TradingExchanges (CTX)


公開電子市集與私有電子市集的比較公開電子市集與私有電子市集的比較

私有電子交易市集私有電子交易市集公開公開 // 聯盟型電子市集聯盟型電子市集

擁有者擁有者由單一買家所擁有由單一買家所擁有獨立經營，或由來自同一產業的一獨立經營，或由來自同一產業的一群公司共同經營群公司共同經營

目的目的 1. 1. 分享分享市集擁有者的市集擁有者的資料資料

2. 2. 作物流及供應鏈的作物流及供應鏈的協作協作

1. 1. 以以價格取向價格取向的觀點買賣商品的觀點買賣商品2. 2. 尋找新的供應商尋找新的供應商3. 3. 買賣多餘的存貨及產能買賣多餘的存貨及產能

參與者參與者篩選過的供應商群篩選過的供應商群公開市場，全面開放公開市場，全面開放

買方的成本買方的成本網站的建置及維持費用網站的建置及維持費用會員費、授權費、交易手續費會員費、授權費、交易手續費供應商的成本供應商的成本無須手續費用無須手續費用交易手續費、會員費交易手續費、會員費主要的問題主要的問題初期投資過大、資料常初期投資過大、資料常

規化規化上傳的問題上傳的問題

近來許多電子市集倒閉近來許多電子市集倒閉因為強調價格競爭，遭一些供應商因為強調價格競爭，遭一些供應商抗拒；抗拒；分享專屬性資料分享專屬性資料資料常規化及上傳問題資料常規化及上傳問題


Private vs. consortium-based Private vs. consortium-based public markets public markets ― example― example

Automotive IndustryAutomotive Industry– Covisint was established in early 2000 by the Covisint was established in early 2000 by the

Detroit’s big three automakersDetroit’s big three automakers– It now also includes Renault, Nissan, Mitsubishi It now also includes Renault, Nissan, Mitsubishi

and Pegeotand Pegeot

Volkswagen established its own private e-Volkswagen established its own private e-marketmarket– Volkswagen e-market provides not only similar Volkswagen e-market provides not only similar

capabilities to that of Covisint but also real-time capabilities to that of Covisint but also real-time information on production plans so that suppliers information on production plans so that suppliers can better utilize resourcescan better utilize resources


E-markets allow buyers to increase market reach, better collaborate with suppliers, and remove inefficiencies from their supply chains.

How to choose the e-market type?


The appropriate procurement strategy depends on the type of product the firm is purchasing as well as the level of risk the firm is willing to take.


Factors of procurement Factors of procurement strategystrategy― ― Type of ComponentType of Component 11

Strategic ComponentsStrategic Components– Part of the finished productPart of the finished product – Not only Not only industry specificindustry specific but also but also

company specificcompany specific– Typically are Typically are integral productsintegral products– Examples: PC motherboard and chassisExamples: PC motherboard and chassis


Factors of procurement Factors of procurement strategystrategy― ― Type of ComponentType of Component 22

Commodity ProductsCommodity Products– Can be purchased from a Can be purchased from a large number of large number of

supplierssuppliers– PricePrice is determined by market forces is determined by market forces– Typically are Typically are modular componentsmodular components– Examples: Memory unit in a PCExamples: Memory unit in a PC

Indirect MaterialIndirect Material– MRO (maintenance, repair, and operation)MRO (maintenance, repair, and operation)


Factors of procurement Factors of procurement strategystrategy― ― Level of RiskLevel of Risk 11

Uncertain Demand (Uncertain Demand (Inventory riskInventory risk))

Volatile market price (Volatile market price (Price RiskPrice Risk))

Component availability (Component availability (Shortage RiskShortage Risk))


For example For example ――Risk: Commodity ProductsRisk: Commodity Products

Can be purchased eitherCan be purchased either– in the in the open marketopen market through on-line through on-line

auction, orauction, or– through the use of through the use of long term contractslong term contracts

Long term contractsLong term contracts guarantee certain guarantee certain level of supply but may be level of supply but may be risky for the risky for the buyerbuyer– Inventory risk, shortage risk or price riskInventory risk, shortage risk or price risk


A Framework for e-ProcurementA Framework for e-Procurement ― ― Indirect MaterialIndirect Material

Typically Typically low risklow risk and hence the focus and hence the focus is on is on content basedcontent based hubs. hubs.

The The objectiveobjective is to use is to use an MRO-huban MRO-hub that specializes in that specializes in unifying catalogs unifying catalogs from many suppliersfrom many suppliers


A Framework for e-ProcurementA Framework for e-Procurement ― ― Strategic ComponentsStrategic Components

Typically Typically high risk componentshigh risk components that that can be can be purchased from apurchased from a small number small number of suppliersof suppliers

The The objectiveobjective is to use is to use private private or or consortia-basedconsortia-based e-marketplace. e-marketplace. (VW vs. (VW vs. Covisint)Covisint)

The The focusfocus is on an e-marketplace that is on an e-marketplace that allow allow collaboration with the supplierscollaboration with the suppliers


Strategic ComponentsStrategic Components ― ― Decision of Decision of ConsortiaConsortia or or PrivatePrivateTransaction volume (Transaction volume (ConsortiaConsortia or or Private)Private)Number of suppliers (Number of suppliers (ConsortiaConsortia or or Private)Private)Cost of building and maintaining the site Cost of building and maintaining the site ((ConsortiaConsortia or or Private)Private)The importance of protecting proprietary The importance of protecting proprietary business practices (business practices (ConsortiaConsortia or or Private)Private)Technology and product life cycles Technology and product life cycles ((ConsortiaConsortia or or Private)Private)– The The shorter the technology and product lifeshorter the technology and product life

cycles, the cycles, the closer the required collaboration with closer the required collaboration with key supplierskey suppliers – – private marketplace will be betterprivate marketplace will be better..


A Framework for e-ProcurementA Framework for e-Procurement ― ― Commodity ProductsCommodity Products11

Products Products go directly into finishedgo directly into finished goodsgoods

– High riskHigh risk

Many potential options to chooseMany potential options to choose fromfrom

1.1. Long Term ContractsLong Term Contracts

2.2. Flexible, or Option ContractsFlexible, or Option Contracts

3.3. Spot PurchasingSpot Purchasing



Long Term ContractsLong Term Contracts– Buyer and supplierBuyer and supplier commit to certain volume commit to certain volume

(called the (called the commitment levelcommitment level))– Supplier guarantees a level of supply for a Supplier guarantees a level of supply for a

committed pricecommitted price

Flexible, or Option ContractsFlexible, or Option Contracts– Buyer pre-pay a relatively small fraction of the Buyer pre-pay a relatively small fraction of the

product price up-front, in return for a commitment product price up-front, in return for a commitment from the supplier to satisfy demand up to a from the supplier to satisfy demand up to a certain level (called the certain level (called the option leveloption level))

– The buyer can purchase any amount up to the The buyer can purchase any amount up to the option level by paying additional price for each option level by paying additional price for each unit purchasedunit purchased



Spot PurchasingSpot Purchasing– Buyers look for additional supply in the Buyers look for additional supply in the

open marketopen market. In this case, the firm should . In this case, the firm should use an use an independent e-marketplaceindependent e-marketplace to to select a supplier.select a supplier.


A Portfolio Approach of A Portfolio Approach of Commodity ProductsCommodity Products11

當當實際需求比預測水準高實際需求比預測水準高，連，連基本承諾量基本承諾量和和選擇水準選擇水準的的總和總和都都無法滿足無法滿足時，將因全時，將因全面性的短缺，面性的短缺，現貨市場現貨市場的的價格上揚價格上揚，此時，此時採現貨市場採購較為不利採現貨市場採購較為不利．．

廠商可決定廠商可決定長期契約之基本承諾量長期契約之基本承諾量及及彈性彈性合約選擇水準合約選擇水準，以在，以在價格風險價格風險、、缺貨風險缺貨風險及及存貨風險存貨風險間間做出作適合的互抵水準做出作適合的互抵水準．．


A Portfolio Approach of A Portfolio Approach of Commodity ProductsCommodity Products22

Inventory Risk

(Supplier)

Inventory Risk

(Buyer)

Price, Shortage Risks

(Buyer)

N/A

Commitment Level

Option Level

L H

H

L


B2B Software VendorsB2B Software Vendors

Oracle (Indirect and Direct)Oracle (Indirect and Direct)

i2 Technologies and Manugistics i2 Technologies and Manugistics (Direct)(Direct)

Ariba (Indirect and Direct)Ariba (Indirect and Direct)

Commerce One (Indirect and Direct)Commerce One (Indirect and Direct)

Agile (Direct)Agile (Direct)

VerticalNet (Indirect)VerticalNet (Indirect)


E-Procurement: The realityE-Procurement: The reality11

Companies conducting greater than Companies conducting greater than 20% of procurement transactions 20% of procurement transactions online have reduced their online have reduced their transaction transaction processing cost by nearly a thirdprocessing cost by nearly a third (Hackett Benchmarking)(Hackett Benchmarking)

Product savings and process cost Product savings and process cost improvements effect improvements effect operating costoperating cost by by 10%10% (Credit Suisse First Boston (Credit Suisse First Boston Technology Group)Technology Group)


E-Procurement: The realityE-Procurement: The reality22

To capture this benefits purchasing To capture this benefits purchasing organization needs to invest heavily in:organization needs to invest heavily in:– Changing internal procurement processesChanging internal procurement processes– Integrating e-marketplaces in internal Integrating e-marketplaces in internal

systemssystems– Purchasing B2B applications, andPurchasing B2B applications, and– Paying e-marketplace transaction Paying e-marketplace transaction

fee/subscription feefee/subscription fee

Source: Forrester Research


Positive Aspects of Trading Exchanges Positive Aspects of Trading Exchanges (Companies who use exchanges)(Companies who use exchanges)11

Reduce costs or labor (31%)Reduce costs or labor (31%)

Better access to products/vendors Better access to products/vendors (24%)(24%)

Increase speed or efficiency (29%)Increase speed or efficiency (29%)

Access to more customers (21%)Access to more customers (21%)

Source: AMR Research


Positive Aspects of Trading Exchanges Positive Aspects of Trading Exchanges (Companies who plan to use exchanges)(Companies who plan to use exchanges)22

Reduce costs or labor (43%)Reduce costs or labor (43%)

Better access to products/vendors Better access to products/vendors (26%)(26%)

Increase speed or efficiency (23%)Increase speed or efficiency (23%)

Access to more customers (10%) Access to more customers (10%)



Negative Aspects of Trading Exchanges Negative Aspects of Trading Exchanges (Companies use exchanges)(Companies use exchanges)11

Security trust (17%)Security trust (17%)

Start Up cost (5%)Start Up cost (5%)

Loss of face-to-face relationships (12%)Loss of face-to-face relationships (12%)

Lack of standards (5%)Lack of standards (5%)

Immature technology (5%)Immature technology (5%)

Integration issues (7%) Integration issues (7%)



Negative Aspects of Trading Exchanges Negative Aspects of Trading Exchanges (Companies who plan to use exchanges)(Companies who plan to use exchanges)22

Security trust (16%)Security trust (16%)

Start Up cost (15%)Start Up cost (15%)

Loss of face-to-face relationships (11%)Loss of face-to-face relationships (11%)

Lack of standards (6%)Lack of standards (6%)

Immature technology (6%)Immature technology (6%)

Integration issues (4%) Integration issues (4%)

Pricing pressure (6%) Pricing pressure (6%) Source: AMR Research

the world is flat ( 世界是平的 ) (thomas friedman)

Documents

relatedprocurementa

risksa framework

knowledge dep

outsourcing2 fine

outsourcing3 fine

customer demand

easy way

new way