It was celebrated by the Tories in a 1989 Commons debate, and always by Scottish Enterprise. A decade ago, Compaq marketed itself on its design and manufacturing capability. In the UK at least, Erskine was part of Compaq's brand, its culture, its differentiation. Clearly, it is now Compaq's policy to view the PC as an item to be made at lowest cost. All this is not necessarily to criticise Compaq.
Companies change their strategies and are duty-bound to chase profitability.
Many other firms will be thinking along similar lines to Compaq's management. Outsourcing is attractive in many ways. According to studies, most companies that announce an outsourcing deal get an immediate share-price lift. Also, if managed correctly and the outsourcing is selective, the vast majority of respondents report cost savings and equal or superior service levels and application performance. Third, outsourcing famously allows customers to focus on their core competencies.