Today’s knowledge-and service-based economy offers companies the chance profits through strategic outsourcing of intellectual-based systems to increase. The author describes an integrated knowledge and outsourcing strategy that can mitigate the risks and concerns associated with outsourcing. Companies with successful strategies knowledge follows generally accepted principles: First, they focus on the development of “best in world” functions really interested customers. An effective core … Read more »

Today’s knowledge-and service-based economy offers companies the chance profits through strategic outsourcing of intellectual-based systems to increase. The author describes an integrated knowledge and outsourcing strategy that can mitigate the risks and concerns associated with outsourcing. Companies with successful strategies knowledge follows generally accepted principles: First, they focus on the development of “best in world” functions really interested customers. An effective core competence strategy focuses on three fifty-eight cross-functional, intellectually based service activities or knowledge and skills. Second, they use the skills and investments of the other through the use of intellectual three areas of outsourcing: traditional service, or functional activities performed in-house, complementary, integrative or duplicate activities across the company dispersed, and disciplines, subsystems or systems in which outsiders have more expertise or skills for innovation. Thirdly, they are constantly innovate. Finally, they eliminate rigidities such as fixed overheads, bureaucracy and a physical system by the resources of the chain and the downstream customers and upstream supply chain technology.
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James Brian Quinn
Source: MIT Sloan Management Review
15 pages.
Release Date: 1 July 1999. Prod #: SMR043-PDF-ENG
Strategic Outsourcing: Knowledge Capabilities use HBR case solution