TY  - JOUR
AB  - Purpose–Most companies focus on using outsourcing to achieve cost cutting. This article urges them instead to consider outsorcings potential for capability enhancement.Design/methodology/approach–Reports on a handful of companies that place outsourcing – onshore or off – in a strategic context.Findings–Leading companies start by analyzing not just where they can outsource to lower costs and improve quality, but which capabilities are vital to their core business.Research limitations/implications–A recent Bain survey of large and medium‐sized companies reports that only 10 percent are highly satisfied with the costs they're saving, and a mere 6 percent are “highly satisfied” with offshore outsourcing overall.Practical implications–Outsourcing has become so sophisticated that even functions like engineering, R&D, manufacturing, and marketing can be moved outside.Originality/value–The authors show that it's no longer a company's ownership of capabilities that matters, but rather its ability to control and make the most of critical capabilities. In other words, capability sourcing has become strategic.
VL  - 33
IS  - 6
SN  - 1087-8572
DO  - 10.1108/10878570510631675
UR  - https://doi.org/10.1108/10878570510631675
AU  - Gottfredson Mark
AU  - Phillips Stephen
PY  - 2005
Y1  - 2005/01/01
TI  - A sourcing strategy for enhancing core capabilities
T2  - Strategy & Leadership
PB  - Emerald Group Publishing Limited
SP  - 48
EP  - 49
Y2  - 2024/05/08
ER  -