For this reason, outsourcing of some or all of the product life cycle is often considered. Outsourcing is as old as business itself" (Grauman, 2000). When outsourcing arrangements ensure that facets such as: communication, cultural issues, and intellectual property protection are taken into consideration, it can be a powerful tool for organizations in meeting the demands of multiple projects, at the same time (Gupta, 2004). No longer does the company have to divide its scarce resources amongst multiple projects. Outsourcing also allows for fixed costs, and often outsourcers are able to take advantage of economies of scale that the organization cannot, leading to reduced costs than if the portion of the product...

Smart outsourcing can lead to the competitive advantage that means the difference between a position as industry leader and a position as industry loser.
References

Grauman, K. (Jul. 2000). The benefits of outsourcing. The CPA Journal, 70(7). Retrieved January 20, 2005, from InfoTrac OneFile database.

Gupta, V. (Nov. 2004). Outsourcing: Examining the real issues. ABA Banking Journal, 96(1). Retrieved January 20, 2005, from InfoTrac OneFile database.

Zhang, G., Cai, X. & Wong, C.K. (Jan. 2004). "Some results on resource constrained scheduling. IIE Transactions, 36(9). Retrieved January 20, 2005, from InfoTrac OneFile…