In the last 25 years, outsourcing has emerged as one of the key globally focused supply chain strategies . After the mid-1990s, the importance of supply chain management (SCM) increased noticeably among practitioners. As a result, the study of supply chain and outsourcing has increased exponentially. In developing markets, with increasing customer demands, outsourcing non-core business
functions has become a commonplace supply chain strategy for many companies and organisations.
DOI 10.1108/BIJ-04-2017-0066
1. Not clear about the extent of business that the company wants to outsource.
2. Not treating the other company as a business partner.
3. Not sharing information and knowledge with the other company.
I think it is all about rapid change in business environment, add to this many external factors that no body can govern such as: political and economical issues, can put the whole business in a big trouble.
Outsourcing company in any SC, as independent decision-maker, make each decision aiming at its own profit-maximization. At the same time, as the member in a SC, their decisions are bounded mutual influence. On the basis of companies facing challenges with outsourcing is objective difference among SC members, which mainly concern quantity, time, quality, and price.
These studies of outsourcing where the companies have different objectives are very interesting. While you practice outsourcing in the different industries it will become more difficult and uncertain.
Lamenting the failure of effectively implementing outsourcing is comical in my opinion and should be celebrated. Outsourcing is the antithesis of sustained business existence, a fatal threat to the long game. It is a business tactic of a looter, hit-and-run management mentality where the strategic understand and appreciation of the importance of internally exponentially building critical tribal knowledge and expertise is limited or squandered for short term gain. Outsourcing essential exports the 'most critical element' of any company, the people, and neutralizes compounding of organizational effectiveness. Ironically the first critical systems that most companies willingly surrender control over are IT, Security, Housekeeping, HR, and Product Development effectively exposing their jugular to industrial espionage, emboldened competition, and careless looting of resources by the less scrupulous both inside and outside the company. This is far worse than simply trying to play the game handicapped by your own hubris, it is willfully rigging the game against yourself. Vested interest lies with those that have a stake in the long game, the perpetual existence of the company. Outsiders have there own agenda, to independently sustain their own existence symbiotically with or against yours but never in spite of their own.
Thank you John Steck , Saidjahon Hayrutdinov , Rawan Ali Saleh and Kaukab Abid Azhar for your contribution here. I hope we can get more reply in this conversation by academics around the world.
Apart from the above, I think the concept of different corporate cultures plays a significant role in outsourcing being a failure or success...
- Badges
- Science topic
- Similar topics
- Public Health
- Health