The SMEs with 50 or more employees that are sourcing internationally: mainly to the EU and via their subsidiaries

Between 2014 and 2016, 1.9% of French commercial SMEs with 50 or more employees, merchant and not active within the agricultural or financial sectors offshored activities and 2.6% intended to do it. It mainly concerns exporting companies or multinationals, that relocate through their subsidiaries, and companies from manufacturing industry or information-communication sectors. Furthermore, 5.1% of SMEs with 50 or more employees have established businesses ex nihilo abroad. The European Union is the preferred destination both for offshoring and for newly developed activities abroad.

Cost cutting is the main motivation for international sourcing, followed by the oppportunity to access new markets. By contrast, backsourcing SMEs (0.9% of SMEs with 50 or more employees) prefer to focus on proximity and quality.