The growth of outsourced global information services and recent developments in U.S. integration of manufacturing are among the topics examined in the current issue of Industry Trade and Technology Review (ITTR), a quarterly publication of the U.S. International Trade Commission's Office of Industries.

Industry Trade and Technology Review contains articles originating from research and analysis conducted by U.S. International Trade Commission (USITC) staff as part of its responsibilities to provide advice and technical information on industry and trade issues. The ITTR provides analysis of important issues and insights into the global position of U.S. industries, the technological competitiveness of the United States, and implications of trade and policy developments.

The ITTR is a publication of the Office of Industries. The opinions and conclusions it contains are those of the authors and are not the views of the Commission or of any individual Commissioner.

The current issue (November 2003) includes the following articles:

• Global Trends in the Information Technology (IT) Outsourcing Services Market -- U.S. imports of outsourced IT services have increased significantly over the last decade, commonly attributed to a shortage of affordable, skilled U.S. labor during the industry's unprecedented expansion. IT services industries developed and expanded rapidly in many countries that offered lower wage rates, but U.S. demand for IT services was so strong at that time that foreign-supplied services generally tended to supplement rather than supplant U.S.-supplied services. Recent economic and geopolitical developments have resulted in a restructuring of the supply and demand for internationally outsourced IT services. Certain factors have tempered U.S. demand for such services from abroad, while others have made offshore suppliers more attractive. This article examines how and why business relationships developed between U.S. firms and lower-wage IT services providers, how the services are delivered, which services are most likely to drive future trade, and how purchasers and providers are adjusting to current economic conditions.

• Production Sharing Update: Developments in 2002 -- Investment in production sharing operations (that use U.S.-made components and materials in foreign assembly plants) is an integral part of global efforts to reduce manufacturing costs and has contributed to the accelerated pace of cross-border integration of manufacturing in North America and the Caribbean Basin. The slow-down in the U.S. economy during 2000-02 and decline in U.S. manufacturing, however, reduced demand for assembly services in Mexico's maquiladora industry. Meanwhile, liberalized access to the U.S. apparel market through the Caribbean Basin Trade Partnership Act (CBTPA) helped assembly plants in the Caribbean Basin region maintain production levels despite intensified competition from China. This article highlights the continued role in 2002 of regional integration of manufacturing in meeting challenges to North American industrial competitiveness.

In addition, the publication includes an appendix charting key performance indicators for the steel, automobile, aluminum, flat glass, and services industries, as well as for North American trade.

Industry Trade and Technology Review (USITC Publication 3661, November 2003) will be posted on the USITC's Internet site at www.usitc.gov. A cumulative list of articles published in the report series is also posted. The ITTR will also be available at regional federal depository libraries in the United States. To request a printed copy of the ITTR or to be added to the mailing list, contact the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. Requests may also be faxed to 202-205-2104.