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APPAREL

INDUSTRY
IT OUTSOURCING
Apparel Industry

Global Apparel Industry – Around US $ 2000


Billion

Market value forecast – By 2013, forecasted


value of US $2751.2 Billion an increase of 39%

Market segmentation – Apparel, accessories


and luxury goods account for 67.6% of the total
industries value

Market segmentation – Europe generates


33% of the total apparel industry value

IT Spending –
Ø North America & Europe : About 3 to 5% of their
Market Segmentation
Segmentation
By
Establishment
By Employment
The Apparel Value Chain
Textile Apparel All retail
Companies Manufacturers outlets
North
America
US Garment factories ( Designing , Cutting , sewing )

R
Brand Names Apparel Companies
NaturCotton , Wool , Yan ( Spinning
al Silk Fabric) ( Weaving , knitting )

E
Fiber Domestic & Mexican ( Subcontractors )
s

T
Asi

A
a

Asian Garment Contractors


Overseas Buying Offices

I
Synthe
Oil ,
tic Natural Petro
Gas - chemical
Synthetic Fibers

L
Fibers

Domestic & Overseas ( Subcontractors


Trading) Companies

Raw Material Compo nent Production Export Networks


Networks Netwo rks Networks
What Can Be Outsourced?
Location Decisions
Organizatio External External Onshore External Nearshore External Offshore
Outsourcing Outsourcing Outsourcing
nal
Dimension

Internal Internal Domestic Internal Internal Offshoring


Supply Nearshoring

  National Within the EU Outside EU

Geographic Dimension

DDeterminants
O
 effsh
lo ca
o re
lizaatio
n d nNof
e alocation
rsh o re O decisions
u tso u rcin g
Lo wss co
Le
Labour V ast
lu co
e Audnand
costs dtri
e ed sProductivity
A ctivitie s
LeLe
ssssTaTa
Capital cti
cti
c cK Kn on wo wlelde gd eg eR Re qe uq iure
Investment ire
dd
A Access
cce ss totoM Markets
a rke ts a nand d InInputs
p u ts – –susuch
ch a sasw workers,
o rke rs, susuppliers,
p p lie rs, a nand
d
bbusiness
u sin e ss
M Market
a rke t K Knowledge
n o w le d g e
Compliance
Market Drivers For Outsourcing
Current Outsourcing Model
Phases of Outsourcing

Strategic Long
Term Business
Goals

Financial Benefits

Improved
Quality &
Customer Value
Operational Collaborative Product , Lifecycle Managemen
Excellence
Proposed Models of Outsourcing
THANK YOU

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