International subcontracting, a common practice - One company in five turns to international outsourcing

Tristan Picard, division Services, Insee

At the end of 2011, 18% of the non-agricultural, non-financial market sector firms with 50 or more employees in France subcontracted part of their business overseas (outside of internal relationships with groups of companies). This practice is more widespread in manufacturing and in the information and communication sector. It is mainly organised within the European Union (EU) and in particular in the EU15. The functions outsourced depend on the end use: more often than not, support activities in the EU, the USA, Canada, Africa and India, and more the core business in China. 28% of companies belonging to a multinational group turn to international outsourcing. Concomitantly or independently, 38% of them, in their production process, use subsidiaries of their group located abroad.

Insee Première
No 1518
Paru le : 07/10/2014