Why Does Strategy Matter in Global Outsourcing?

According to M.M. Sathyanarayan, strategies are an integral aspect of the global outsourcing process in this article – the author voices his opinion with respect to the strategies employed by companies with respect to the global outsourcing process. Sathyanarayan states that for most companies, financial gain and cost reduction are the only strategies applied to the global outsourcing process. Although this approach is helpful in improving cost-efficiency, companies should also focus on other aspects of global outsourcing.

Sathyanarayan suggests that companies should take a holistic approach to the process of global outsourcing. Outsourcing allows companies to function more efficiently and to reach out to a larger customer base. The author states that most companies focus only on the global marketing strategies taking into consideration only the financial aspect. Companies ignore other significant activities that are associated with the process of global outsourcing.

Sathyanarayan is of the opinion that companies do not view global outsourcing a s means to serve their customers better, they simply view it as a means to reduce costs. Future work is required to this article in order to explain the different types of global outsourcing strategies.

The Researcher finally suggests that companies should use outsourcing strategies and methods in order to manage their global outsourcing process successfully.