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