OUTSOURCING OFNON-CRITICAL ACTIVITIES

OUTSOURCING OFNON-CRITICAL ACTIVITIES

• Outsourcing non-critical STRATEGIC ACTIVITIES allows firm to concentrate resources on value-chain activities where it
  • Can create unique value
  • Can be best in industry or in the world
  • Needs strategic control
• Outsourcing value-chain activities makes strategic sense whenever
  • They can be performed at lower cost and/or with higher value-added by outsiders

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