ABSTRACT
Access can be gained to cheaper labour through the putting out system. From a technological point of view, all clothes could be produced in a putting out system, but typically it is found in those for which demand is most volatile and distribution channels are diffuse. Proximity and close interaction between suppliers and users is essential for the new technology to function well, particularly in relation to maintenance. Even in the advanced countries the new technologies are only beginning to show their impact on employment patterns. Probably the main problem of more decentralised work is that many of the micro-electronics related innovations are in their first generation and much of the decrease in capital costs and increase in flexibility is to come. In contrast to previous technical innovations, micro-electronics promise to reduce capital costs and increase flexibility.
