This article by Alan MacCormack (2007), deals with the various aspects of the process of global outsourcing. Alan states that most companies outsource for one primary reason – that reason is that outsourcing allows companies to reduce costs. However, Alan has noted that outsourcing has many other benefits and can have a tremendous influence on international economy.
If a company ignores other aspects of global outsourcing, then it has very few chances of succeeding as it will be brought down by its competitors. If a company can co-ordinate its business strategies with its outsourcing strategies then it can gain a competitive advantage in the international market. In this article, Alan proposes different strategies which companies can implement in order to boost their productivity. Alan mentions that companies should look at outsourcing as an opportunity to form international alliances.
This will give them the opportunity to penetrate into upcoming and existing markets. Alan explains in detail the process of global outsourcing from the perspective of the companies seeking to outsource. He sheds new light on the less explored areas of global outsourcing and offers a completely new dimension to the process. Alan also states the various alterations that can be made in the management system in order to outsource in a more efficient manner. This helps companies to overcome the limitations of global outsourcing.
The researcher draws the following conclusion – several companies with similar products or services may have a similar strategy too. But the company which makes alterations and implements its strategy to gain competitive advantage will secure the advantage in the market. Future work is required to this article in order to explain the detailed information on the global collaborative strategies that allows the companies to get competitiveness in the global market.
The Researcher suggests that every company might have same strategies, but they vary in the implementation process and if the companies are successfully implementing the strategies in a different way by managing competitive advantages then that company can get competitiveness in the marketplace when compared with its competitors.