Outsourcing to outmanoeuvre:: Outsourcing re-defines competitive strategy and structure

Based on a case study approach, the authors examine the question: are there some aspects of a company's core business which can and should be outsourced? This question challenges traditional models of strategy which maintain that outsourcing of core activities is risky. Four circumstances are identified for outsourcing and examined in detail. The arguments and case studies suggest a number of lessons for managers and a general conclusion reached which supports the view that the outsourcing of core skills can be very beneficial for firms, providing the right approach is taken.

[1]  R. Kanter Collaborative advantage: The art of alliances , 1994 .

[2]  Richard A. D'Aveni,et al.  Hypercompetition: Managing the Dynamics of Strategic Maneuvering , 1994 .

[3]  Chong Ju Choi,et al.  Increasing Returns and Social Contagion in Cultural Industries , 1999 .

[4]  David Ernst,et al.  Is your strategic alliance really a sale , 1995 .

[5]  C. Prahalad,et al.  The core competence of the corporation’, Harvard Business Review, Vol. pp. . , 1990 .

[6]  C. Baden‐Fuller,et al.  Rejuvenating the Mature Business , 1996 .

[7]  R. Grant,et al.  A KNOWLEDGE-BASED THEORY OF INTER-FIRM COLLABORATION. , 1995 .

[8]  Joseph L. Badaracco,et al.  The knowledge link : how firms compete through strategic alliances / Joseph L. Badaracco, Jr. , 1993 .

[9]  Arvind Parkhe “Messy” Research, Methodological Predispositions, and Theory Development in International Joint Ventures , 1993 .

[10]  D. Lei Offensive and defensive uses of alliances , 1993 .

[11]  D. Ernst,et al.  The way to win in cross-border alliances. , 1991, Harvard business review.

[12]  C. Clarke,et al.  Hypercompetition—Managing the dynamics of strategic manoeuvring , 1995 .

[13]  C. Prahalad,et al.  The Core Competence of the Corporation , 1990 .

[14]  W. Powell,et al.  Interorganizational Collaboration and the Locus of Innovation: Networks of Learning in Biotechnology. , 1996 .

[15]  D. Leonard-Barton CORE CAPABILITIES AND CORE RIGIDITIES: A PARADOX IN MANAGING NEW PRODUCT DEVELOPMENT , 1992 .

[16]  Y. Doz,et al.  Alliance Advantage: The Art of Creating Value Through Partnering , 1998 .

[17]  A. V. D. Ven,et al.  Explaining Development and Change in Organizations , 1995 .

[18]  Henk W. Volberda,et al.  Strategic Renewal: How Large Complex Organizatons Prepare for the Future , 1997 .

[19]  John Child,et al.  THE CONTEXT AND PROCESS OF ORGANIZATIONAL TRANSFORMATION ‐ CADBURY LIMITED IN ITS SECTOR , 1987 .