Strategic Outsourcing: Leveraging Knowledge Capabilities Harvard Case Solution & Analysis

Knowledge and today service-based economy offers companies the opportunity to increase profits through strategic outsourcing of intelligent systems. The author describes the integrated knowledge and outsourcing strategy that can mitigate the risks and challenges associated with outsourcing. Companies with successful strategies for knowledge follow generally accepted principles: First, they focus on the development of the "best in the world," the possibility that customers really care about. An effective strategy to focus on core competencies 3:58 cross-functional, intellectually based service activities or skills. Second, they use other investment opportunities and using the three intellectual Outsourcing: traditional services or functional activities in the house, complementary, integrative, or duplicative activities are spread throughout the company, as well as discipline, subsystem or system in which outsiders have more experience and opportunities for innovation. Third, they constantly innovate. Finally, they eliminate inflexibilities, such as fixed overhead costs, bureaucracy and physical plant by clicking on the resources of the downstream customer chain and upstream technology and supply chains. "Hide
by James Brian Quinn Source: MIT Sloan Management Review 15 pages. Publication Date: July 1, 1999. Prod. #: SMR043-PDF-ENG

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