Outsourcing: Current and future trends

Thunderbird International Business Review 02/2005; 47(2):183 - 204. DOI: 10.1002/tie.20048

ABSTRACT Highlighted are two reasons for outsourcing: cost and focus on the core competencies of the enterprise. Surveying U.S., U.K., and Continental Europe companies concerning current and future outsourcing trends positions outsourcing as a prominent strategic lever. Achieving “best-of-breed” practice is predicted to occur through new technology. Also, human resources and IT outsourcing will become more prominent. The results strongly indicate that partnership alliances and performance-driven contracts will become as important as the current preferred, trusted supplier relationship. Keiretsulike, horizontal linkages will be required to realize scale and competency advantages from future outsourcing arrangements. © 2005 Wiley Periodicals, Inc.

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