ISSN:
1087-8572
Source:
Emerald Fulltext Archive Database 1994-2005
Topics:
Economics
Notes:
Purpose - Most companies focus on using outsourcing to achieve cost cutting. This article urges them instead to consider outsorcings potential for capability enhancement. Design/methodology/approach - Reports on a handful of companies that place outsourcing - onshore or off - in a strategic context. Findings - Leading companies start by analyzing not just where they can outsource to lower costs and improve quality, but which capabilities are vital to their core business. Research limitations/implications - A recent Bain survey of large and medium-sized companies reports that only 10 percent are highly satisfied with the costs they're saving, and a mere 6 percent are "highly satisfied" with offshore outsourcing overall. Practical implications - Outsourcing has become so sophisticated that even functions like engineering, R&D, manufacturing, and marketing can be moved outside. Originality/value - The authors show that it's no longer a company's ownership of capabilities that matters, but rather its ability to control and make the most of critical capabilities. In other words, capability sourcing has become strategic.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1108/10878570510631675
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