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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
Atkins, D., & Liang, L.. (2010). A note on competitive supply chains with generalised supply costs. European Journal of Operational Research,...
(2010). Operational and Strategic Learning in Global Software Development. IEEE Software, 27(6), 58-65.
Grimpe, C., & Kaiser, U.. (2010). Balancing Internal and External Knowledge Acquisition: The Gains and Pains from R&D Outsourcing. The Journal of Management Studies, 47(8), 1483.
James a. Hall, & Stephen L. Liedtka. (2007). The Sarbanes-Oxley Act: implications for large-scale it outsourcing. Association for Computing Machinery. Communications of the ACM, 50(3), 95-100.
Kaya, O.. (2010). Outsourcing vs. in-house production: a comparison of supply chain contracts with effort dependent demand. Omega, 39(2), 168.
Lacity, M., Khan, S., Yan, a., & Willcocks, L.. (2010). A review of the it outsourcing empirical literature and future research directions. Journal of Information Technology: Special Issue: 25th Anniversary Edition, 25(4), 395-433.
Moon, Y., Yao, T., & Jiang, B.. (2010). Outsourcing vs. joint venture from vendor's perspective. International Journal of Production Economics, 129(1), 23.
Mudambi, R., & Venzin, M.. (2010). The Strategic…
References
Atkins, D., & Liang, L.. (2010). A note on competitive supply chains with generalised supply costs. European Journal of Operational Research, 207(3), 1316.
Boden, a., Nett, B., & Wulf, V.. (2010). Operational and Strategic Learning in Global Software Development. IEEE Software, 27(6), 58-65.
Grimpe, C., & Kaiser, U.. (2010). Balancing Internal and External Knowledge Acquisition: The Gains and Pains from R&D Outsourcing. The Journal of Management Studies, 47(8), 1483.
James a. Hall, & Stephen L. Liedtka. (2007). The Sarbanes-Oxley Act: implications for large-scale it outsourcing. Association for Computing Machinery. Communications of the ACM, 50(3), 95-100.
This particular example makes it quite clear that outsourcing is incredibly useful to corporations, and its availability means that it must be utilized if a company wishes to remain competitive in the fast-paced world of technology and innovation (Intertek 2011). In this example, the workforce remains largely unharmed, as well, demonstrating the possibility that jobs really will come back around in the developed world, only shifted up the socioeconomic
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