Outsourcing as Strategic Tool
When does outsourcing serve as a strategic tool? Does it have other purpose other than strategic?
In the last five years, however, we have witnessed rapid growth in business process, manufacturing and design outsourcing. While almost all forms of outsourcing are intended to reduce cost, we often simplistically refer them as "strategic tools."
Outsourcing serves as a strategic tool when:
1. It serves strategic functions in growing the business in terms of brand acceptance, gaining competitive advantage and increasing share price
2. It is primarily linked to company's philosophy and mission statement
3. It provides a long-term access in developing further business strategies
4. It provides a basis for business, particularly expansion, decisions
Other purposes of outsourcing include:
1. Cost reduction
2. Regulatory compliance
3. Immediate problem solver with short-term results
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Many say outsourcing sux and blame the US, India, big corporations, anyone but themselves. I am sure some blame can be laid all around, the problem is the complaints don’t stop. Everyone just keeps whining and not working towards doing something creative, different, innovative. If we are going to evolve as a society, we are all gonna have to use our imaginations much more often. This of course is my opinion. I am interested to know what others think of this world- wide phenomenon…
http://www.outsourcingsux.com
Comment by exmind on January 11, 2006 8:39 pm