From this standpoint, outsourcing is more concerned with the strategic implications and incremental revenue gains vs. just the cost reductions over time. Companies are relying on outsourcing as a means to gain critical insight and to learn entirely new skills in the process (Grimpe, Kaiser, 2010). Outsourcing from this standpoint has evolved more into an alliance aimed at knowledge transfer. The reliance on this approach to outsourcing as a means of knowledge transfer has become so prevalent that joint ventures are beginning to occur between outsourcing providers and their largest customers (Moon, Yao, Jiang, 2010). Examples of this include Infosys creating alliances with Microsoft a an joint venture to outsource core it functions globally throughout the software provider first, and second, throughout shared enterprise customers. In conclusion, outsourcing has shifted from being purely focused on just cost reduction to being attuned to the needs of knowledge generation, joint ventures and the creation of long-term value through shared learning. References

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