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OUTSOURCING: FOCUSING ON CORE COMPETENCIES AND DELEGATING NON-CORE FUNCTIONS. Illustrate your essay with specific examples.

Introduction

This paper aims to explore how true is the position of firms pertaining to keeping core competencies while outsourcing everything else to suppliers. The growing trend about outsourcing and off-shoring caused by globalisation trends allows managers to look at this new direction. Significant global changes brought about by technology and globalisation have been occurring recently, causing firms to consider other means of restructuring and reorganising. Friedman (2005) presents this scenario in a metaphorical way, describing the world as flat in terms of commerce and competition, in which all competitors are of equal opportunity and footing. A similar shift of perception is required from firms if they opt to become competitive in a global market where regional, historical, and geographical divisions are increasingly becoming irrelevant. Outsourcing is one of these shifts, in which a firm decides to outsource non-core functions to an outsourcing partner.

Conclusion

A firm need not burden itself with all the core competencies and non-core functions commonly associated with its operations. Rather, outsourcing is a practical and viable resort to improving competitive advantage while focusing solely on its core business. With his in view, this paper agrees that managers need to understand and keep in-house their core competencies and have the non-core functions of the firm be outsourced to an outsourcing partner. This would mean focusing only on the core functions needed in accelerating productivity. This stance would spell savings, increase in profits, and improvement of the level of quality, productivity, business performance, and business value on the part of the firm, while preponderance of jobs on the part of the outsourced country. Trailing this path of outsourcing strategy is hence beneficial to organisations.

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