Computer titans focus on design as small firms do actual output

Article Abstract:

Large computer manufacturing companies are increasingly outsourcing the construction of components to smaller firms that specialize in particular forms of manufacture and are thus able to provide products at a lower overall cost. SCI Systems, the largest of these electronic manufacturing service (EMS) companies, alone produced $2.67 billion in the fiscal year ending Jul 31, 1995, with a $45.2 million net income. Analysts project that the EMS industry, which produced more than $16 billion in 1994 US revenue, will by 1997 account for 11% of all US electronics shipments. Eighty percent of the world's $21.1 billion printed circuit board revenue for 1994 was controlled by the EMS industry, prompting analysts to suggest that the outsourcing trend may be irreversible.

Electronic Computer Manufacturing, Manufacturing Computer Systems, Services, Forecasts and trends, Equipment and supplies, Industry trend, Market trend/market analysis, SCI Systems Inc., SCIS, Outsourcing, Computer based manufacturing, Computer Manufacture, Industry Trend Or Event

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IBM is granted approval by India for joint venture

Article Abstract:

The Indian government has agreed to allow IBM to form a joint venture with India's Tata Group, in that country. IBM will manufacture PS/2 computers and publish related software. Some of the products will be sold in India and some will be exported. The Indian government's decision apparently signifies a move away from central planning, which has not worked very well there. India apparently now intends to open its industries to foreign investment. IBM had a large manufacturing facility in India but had to practically pull out of the country when the government imposed restrictive investment policies in 1977. The agreement with Tata marks IBM's reentry into the Indian market.

Joint ventures, International Business Machines Corp., IBM, India, Tata Group, Joint Venture

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