This paper illustrates how contract manufacturing is playing anincreasingly important role in the telecommunications industry.Traditional telecommunications manufacturers need to concentrate on theactivities which can bring the highest value to their customers, whilethey tend to subcontract other activities, especially if they do nothave the needed core competencies. In fact, most telecommunicationsmanufacturers are outsourcing some of their manufacturing activities toCMs (contract manufacturers), also called CEMS (contract electronicmanufacturing services). GEMS manage a portfolio of plants locatedaround the world using flexible, modular and reconfigurable assemblysystems. Two case studies were undertaken in order to demystify the newand diversified role of CEMS in the telecommunications industry. Theauthors' findings have enabled them to develop a typology of outsourcingstrategies for telecommunications manufacturers which correspond to thedifferent roles of CEMS
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