NEWTON, MA -- Outsourcing of electronics manufacturing will rise 113% over the next five years, to $294 billion in 2008, according to a new report.

ODMs (original design manufacturers) will outpace electronics manufacturing services providers (EMS), Reed Business said.

Overall, outsourced products will reach 23% of all electronics built by 2008, up eight points from 2003, Reed said. The EMS growth will come largely from OEMs divesting greater amounts of their manufacturing. ODMs will grow to $114 billion in 2008, from $47 billion in 2003, a 143% gain. EMS firms will grow 25%, to $114 billion during that period.

The difference, as defined by Reed: "EMS providers typically build equipment for an OEM based on the OEM's design. An ODM often owns a design—or licenses it and builds a product for multiple OEM customers."

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