SourceToday recently completed its 2018 survey studying salary and career trends. This survey gathered inputs from a wide range of professionals in purchasing and procurement positions. The rich data sets created in this survey enable in-depth analysis of multiple aspects of professional salaries and careers in this area. This report covers the impact of outsourcing activity and is the first in a series of five reports covering key dimensions related to salary and career trends. Other reports in this series will cover the following topics:
- The impact of automation
- Purchasing professional demographics
- Compensation trends
- Purchasing workforce dynamics
Data in this report is presented and analyzed from multiple perspectives, including changes over the past three years and perspectives by type of employer, years of experience, and employers’ current outsourcing activities.
Who is Outsourcing and Where are They Outsourcing?
The percentage of companies outsourcing work increased measurably from 63.9% in 2016 to 67.0% in 2018. However, there is a big disparity in outsourcing activity by type of company. The percentage of companies outsourcing in 2018 shows a big difference between OEMs, contract manufacturers, and distributors. The survey found that 84.0% of OEMs currently outsource work while only 43.6% of distributors employ outsourcing.
The locations where U.S. companies are outsourcing is becoming more diverse over time and is developing a more global presence. While the U.S. still dominates outsourcing locations, other geographies have seen a significant increase in the percentage of companies engaging in outsourcing work. The US has declined from 77.0% to 72.2% as a destination for outsourcing between 2016 and 2018. Meanwhile, significant increases between 2016 and 2018 are seen in Mexico, Europe, the Pacific Rim region, Canada, and South America. Distributors and contract manufacturers are more prone to outsource to other U.S. locations, while OEMs engage more actively in China and Pacific Rim countries.
REGISTER FOR MORE VALUABLE DATA AND ANALYSIS:
- Why are Companies Outsourcing, and What Functions are Outsourced?
- Who Makes the Outsourcing Decision?
- How Does Outsourcing Impact Purchasing and Procurement Professionals?
- Is There Reason for Concern?