The global market for RFID systems in the retail consumer products and goods market reached $161 million in 2005, according to Venture Development Corp., with hardware accounting for approximately 41 percent of sales. VDC anticipates a compounded annual growth rate of nearly 57 percent over the next five years, with RFID revenue exceeding $1.5 billion in 2010. Compliance mandates drove much of the adoption in 2005, according to VDC.
Early in the book Smartsourcing
, authors Tom Koulopoulos and Tom Roloff acknowledge, "One of the reactions to the term smartsourcing may be to ask, 'As opposed to what, dumbsourcing?' At the risk of sounding trite our response would be, yes, exactly! The streets are littered with the remnants of sourcing deals that have not performed as expected or that have simply gone bad." The authors give suggestions for deciding which functions to outsource and which to keep. For example, "How well do you execute it? How important is it to your competitive position?" The ideas are more theoretical than practical, but there's much food for thought here for anybody trying to make outsourcing decisions.