MBA Literature Review on Reassess Your Global Outsourcing Strategy

Why You Need To Regularly Reassess Your Global Outsourcing Strategy

In this article (2007), the author – M.M. Sathyanarayan speaks about why companies should reassess their global outsourcing strategy. Sathyanarayan illustrates the importance of reassessing global outsourcing strategies. He states that most companies form their strategies by taking into consideration only the financial aspect of outsourcing. Companies should look at outsourcing as a way of serving their customers in a more efficient manner; and not just as a cost-reduction technique.

Sathyanarayan states that companies have a dogmatic approach to global outsourcing and explains this with the example of landscape outsourcing. He states that when companies want to outsource products, they rely heavily on the so called popular international markets and do no pay much attention to the developing markets.

Sathyanarayan mentions that the international market is not limited to developed countries of Europe, USA, UK, Canada, Australia and New Zealand. Companies should also take a look at emerging markets. Also, if a company succeeds in aligning its business activities with global outsourcing, then that company will definitely succeed at the international market.

            After a critical analysis of the article, the research concludes that companies should outsource to undeveloped and to developing countries as this will enable them to capture new markets. This article should be developed with further research work that gives a clear idea on global outsourcing landscape strategy and its importance to the companies.

After reviewing this article, the researcher suggests that companies should try to manage their activities in undeveloped locations in order to support that country and to succeed in new markets. 

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