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Employment effects of International sourcing in the Netherlands

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Population: 4633 enterprises with 100 employees (manufacturing and ... popu-lation. About the response. International sourcing 2001-2006, general results (1) ... – PowerPoint PPT presentation

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Title: Employment effects of International sourcing in the Netherlands


1
Employment effectsof International
sourcinginthe Netherlands
  • 13 March 2008
  • Gusta van Gessel-Dabekaussen
  • Mark Vancauteren
  • Statistics Netherlands

2
About the survey
  • Population 4633 enterprises with 100
    employees (manufacturing and services)
  • Sample 1503 enterprises
  • Response 1002 enterprises

3
About the stratification
  • Weight population / response
  • All branches are equally represented in the sample

4
About the response
5
International sourcing 2001-2006, general results
(1)
6
International sourcing 2001-2006, general results
(2)
7
International sourcing 2001-2006, general results
(3)
8
International sourcing 2001-2006, general results
(4)
9
Plans in 2007-2009
10
Intermediate conclusion (1)
  • Survey is a direct and clear method for measuring
    employment effects of international sourcing
  • As a result the figures must be interpreted with
    a certain degree of caution, because about a
    quarter of the respondents reports do not know
    about the effects on employment
  • The results refer to employment effects in the
    enterprise. Outsourcing also will cause
    employment effects out of the enterprise

11
Intermediate conclusion (2)
  • The results refer to employment effects from
    point of view of the enterprises. Long term
    effects are not always known
  • The survey in the Netherlands only concerns
    enterprises with more than 100 employees. Of
    course also smaller enterprises are involved in
    international sourcing with employment effects
  • Survey causes burden for enterprises

12
More statistic analysis
  • Principal component/factor analysis
  • Describes the covariance relationships among
    variables in terms of a few underlying
    components/factors
  • Useful for distinguishing data variables from
    concepts.
  • Small area estimators
  • - Estimation of small area statistics from a
    sample designed for making large area statistics.

13
(No Transcript)
14
Factor analysis on reasons for international
outsourcing
  • Is it possible to identify patterns in the
    questionnaire that focuses on the reasons why
    firm engage in international outsourcing?
  • Do these (possible) patterns differ across the
    type of international outsourcing (fragmentation
    of core versus support activities)

15
Factor analysis (2) outsourcing core business
16
Factor analysis (3) outsourcing support
activities
17
Summary factor analysis (4)
18
Summarizing the results (I)
  • Displacement of employment is signficant
  • About 9000 jobs mostly in manufacturing!
  • Bias towards low/medium skilled employment
  • Most important reason for international
    outsourcing is cost related from which the labour
    component is the most important one.
  • Factor analysis suggests that international
    outsourcing follows a strategic business process
    that gives a unique competitive position through
    reaping the cost advantages

19
Results Conclusion(2)
  • Outsourcing the core versus support activities
    are commonly determined by strategic
    considerations!
  • Cost motivation differs in importance and type
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