Outsourcing decreases foreign investments.

South American Business Information, July, 2004

Brazil, Jul 5, 2004 (O Estado de Sao Paulo/SABI via COMTEX)

According to a survey undertaken by Deloitte, Brazil, China, India, Korea and Mexico are main targets to big-sized companies that aim to invest in outsourcing. Those companies intend to concentrate on the development of products, marketing and sales instead of on output. Hyper Data outsourced production of computers with Solectron, which owns a plant in Jaguariuna (Sao Paulo state). The company turns over R$250mil per year with 5,000 sales per month. Deloitte's report also appoints that US investments in Latin America slumped from US$8.2bil in 1999 to US$600mil in 2002. In Brazil, the rate of investments reached US$224mil negative in 2002, meaning that companies shut down plants and quit the market....

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