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International Sourcing, Slovenia, 2001-2009

Thursday, January 22, 2009, First Release
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In the 2001-2009 period, 21 % of Slovenian medium-sized and large enterprises sourced or were planning to source their business activities to foreign markets.

International sourcing (offshoring) is a total or partial movement of business functions (core or support business functions) currently performed in-house or currently domestically sourced by the resident enterprise to enterprises located abroad. Slovenian enterprises estimated that international sourcing had a positive impact on their enterprise and contributed to their competitive advantages.

More than half of Slovenian companies estimated, that international sourcing had no impact on the employment in their enterprise. Most of the enterprises, that sourced their activities to foreign markets were from the manufacturing sector, and as many as 75 % of all the enterprises that sourced their activities to foreign markets sourced them within the enterprise group. Enterprises sourced mainly their production of goods and services, as well as marketing, sales and similar services, distribution and logistics.

Slovenian medium-sized and large enterprises sourced their activities mostly to Serbia and Croatia. The main motivation factor for the decision to carry out international sourcing was improved competitiveness, access to new markets, position on the market and reduction of costs, while the main barriers were overall concerns that the sourcing operation would exceed the expected benefits, the high risk of sourcing internationally and a lack of management resources and know-how.

The pilot survey on the reasons, extent and consequences of international sourcing was conducted as a part of Eurostat surveys and is one of the first attempts to estimate the extent of international sourcing in the EU. Economic globalization represents a challenge for national statistics while measuring all new forms of businesses and producing a sufficient and coherent set of new statistical indicators at national and European levels.

International sourcing within and outside of enterprise groups (in %), Slovenia, 2001-2009
International sourcing within and outside of enterprise groups (in %), Slovenia, 2001-2009
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Links to the detailed methodological explanations, detailed data in Si-Stat database and liks to other related topic can be found on the web sitehttp://www.stat.si/novica_poglej.asp?id=124.

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