Untethered Organizations – Accessing Leverage Through Outsourcing

Overview: "The most prominent characteristic of futuristic companies will be their ability to be flexible, for time to market is critical in sustaining a competitive advantage. While larger companies are more cumbersome and take longer to respond to changing markets, smaller companies often don’t have the capital or other resources to be able to respond as needed. No matter their motivation, companies of all sizes that outsource their non-core processes make themselves more agile. Untethered organizations optimize outsourcers’ points of leverage to achieve greater efficiencies, lower costs, and access to resources, thus increasing their competitive advantage. They use the strategy of outsourcing to do more with less. But the model is not without risks. Buyers must recognize that, for a virtual or hollow corporation, outsourcing is a strategic alliance that is more permanent by nature. Since the buyer has few (or no) internal resources to provide the services, it is totally reliant on the outsourcer in order to stay in business. Therefore, the strength of the “partnership” approach to interactions between the outsourcer and buyer in a virtual situation becomes even more crucial. "

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Format: HTML | Size: 13KB | Date: Jan 2002 | Pages: 238