Up until this year the corporate mantra was “outsourcing, outsourcing outsourcing” which meant hiving off non-core divisions, just-in-time inventory management and contracting low cost suppliers to supply product inputs through the product development and delivery cycle.
This trend is changing with the corporate tide swinging the other way to “in-sourcing” where companies are seeking to control end to end product development, manufacturing an delivery. This is only the beginning.
Several deals this year such as Oracle/Sun, Pepsi/ Pepsi Bottling/Apple/ Hewlett Packard and others are “buying in” and corporate integration is back.
See the recent article at the WSJ here. (subscription)
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