Technology firms should be wary of outsourcing manufacturing overseas en
masse, says the author of an annual IT industry report.

Firms looking to cut costs could lose something more valuable.

"If you divest manufacturing out of your value proposition and don't have
that close integration between manufacturing and design and development ... you
potentially abdicate a competitive advantage," says Technology Investment
Network director Greg Shanahan.

"A lot of the time it's that close collaboration that's made these companies
competitive in the first place."

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