ABSTRACT
In Chapter 4, we have explained the role IT plays in the emergence of global product lifecycles, or, more generally, global value chains (Gereffi 2006) which include a complex mix of manufacturing and informational tasks. These value chains are subjected to global sourcing phenomena, that is the processing of tasks, or the purchase of parts and capabilities (in the case of outsourcing contracts) in places whose location depends on the best mix of prices, quality, and skill availability offered by local conditions. This much finer spatial division of labor is characterized by a trend towards vertical disintegration (or “value chain unbundling”), and towards horizontal reintegration and concentration.
