Outsourcing strategies: opportunities and risks

Strategy & Leadership

Volumn 32, Issue 6, 2004, Pages 20-25

  Leavy, Brian ^a  

^a NONE

Author keywords

Corporate strategy; Innovation; Outsourcing; Risk management

Indexed keywords

EID: 18244372265     PISSN: 10878572     EISSN: None     Source Type: Journal    
DOI: 10.1108/10878570410568875     Document Type: Article

References (9)

1. For a full discussion of these value drivers seeTreacy, M. and WIersema, F. (1993), “Customer Intimacy and other value disciplines”, Harvard Business Review, January-February, pp. 84-93. For a closer look at the inherent tensions among them, see also Hagel, J. and Singer, M. (1999), “Unbundling the corporation”, Harvard Business Review, March-April, pp. 133-41.
2. For more on the Nortel case see Fisher, L.M. (2001), “From vertical to virtual: how Nortel's supplier alliances extend the enterprise”, Strategy + Business, Quarter 1.
3. The term disruptive innovation is used here in the sense defined by Clay Christensen-see Christensen, C.M. and Raynor, M.E. (2003), The Innovator's Solution, Harvard Business School Press, Boston, MA.
4. Quote from Gerstner, L.V. (2003), Who Says Elephants Can't Dance? HarperBusiness, New York, NY.
5. Bob Moffat, general manager of IBM's Personal & Printing Systems Group quoted in an IBM press release, “IBM signs agreement with Sanmina-SCI to manufacture its NetVista desktop PCs in US and Europe”, January 8 2002.
6. For more on the GE/Samsung case see Magaziner, I.C. and Patinkin, M. (1989), “Fast heat: how Korea won the microwave war”, Harvard Business Review, January-February, pp. 83-91. For more examples of the risk of losing key skills and learning opportunities, see Lei, D. and Slocum, J.W. (1992), “Global strategy, competence-building and strategic alliances”, California Management Review, Fall, pp. 81-97.
7. For more on the embedded and integrated nature of core competencies see Prahalad, C.K., Fahey, L. and Randall, R.M. (2001), “Creating and leveraging core competencies”, in Fahey, L. and Randall, R.M. (Eds), The Portable MBA in Strategy, 2nd ed, Wiley, New York, NY, pp. 236-52.
8. For more on this risk, see Christensen, C.M. and Raynor, M.E. (2003), The Innovator's Solution, Harvard Business School Press, Boston, MA (especially chapters 5 and 6-the quote comes from Chapter 6).
9. Maurice O'Connell, Materials Director of Hewlett Packard's inkjet printer business, in conversation with the author at the HP plant in Dublin, July 2nd, 2004.