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Strategic Outsourcing

Some companies have outsourced the wrong things for the wrong reasons and in the wrong way. Describe the three most important lessons you have learned about strategic outsourcing?

How do I approach this from a project management perspective?

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Some companies have outsourced the wrong things for the wrong reasons and in the wrong way. Describe the three most important lessons you have learned about strategic outsourcing?

1. Concentrate on a company's own resources on a set of "core competencies" where a definable preeminence can be achieved and a unique value for customers can be provided. Every company needs a core competency and should focus all of it scarce resources on developing that competency. Having a core competency implies that an organization could do something better, faster, and cheaper than anyone else. Usually strategic outsourcing of core parts is about performance such as quality, service, and flexibility.

2. Commodities and core parts can be outsourced but the techniques to be used should be evaluated carefully. This is true especially with smaller companies as they might be more at risk because of a lack of resources to play catch-up whereas larger companies have the resources to regroup if they ineffectively outsource something strategic. When a company decides to outsource, they must be ready to address the risks involved if the providing ...

Solution Summary

The solution describes the three most important lessons learned from strategic outsourcing and how they are approached from a project management perspective. References included.

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