| Publisher | Gartner | ||
|---|---|---|---|
| Format | 36.4KB PDF | Date added | 23 Mar 2006 |
| Topics | Outsourcing, Resources Mgmt. | ||
| Downloads | 5 | ||
To survive as chip design moves to higher levels of integration, chip design outsourcing firms must develop new capabilities and new products, such as intellectual property and software. Design services companies have, for many years, provided a valuable service to electronic system Original Equipment Manufacturers (OEMs) and semiconductor vendors. But the reasons for outsourcing electronic design are changing. Before the market crash of 2001, the primary reason centered on shortages of engineers. This was a consistent finding from Gartner surveys and discussions with vendors. When vendors had insufficient internal resources for a project - normally during periods of high market growth - they turned to outsourcing services. The economics of the industry changed in 2001, probably permanently.
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