Introduction International Business
The Review of:
The Innovative Organization:
Creating Value through Outsourcing
California Management Review, 50.1, 2007 (p.261-277).
Group 24 team 5
M. Mardhi (S2167727)
R. Theofelea (S2178966)
Tutorial Lecture :
Ritsema, H A
Date of Submission :
December 1, 2011
“The innovative organization: creating value through outsourcing” is the title of California Management Review 50.1, p261-277, that was written by Steven Tradelis and was published in 2007. This article is examining about the recent business trends that acquired attention from companies worldwide which are the practice of outsourcing and offshoring. Businesses applied these kinds of practices in order to procure efficiency. In fact, several examples of failed outsourcing and offshoring occurred over the life of it. By offering strategic frameworks of the activities, Tradelis believes that the people reading his article could wisely consider which strategy the company uses in order to give a success to managers while innovating the sourcing activity effectively and efficiently. The main objection the author wanted to point out in this article is to encourage businesses to be more active in exploring the opportunities of the source in both inside and outside the company by referring to preceding occurrences and data. Body
Several interesting points are brought up in this California Management Review. The first thing, the author mentioned the backsourcing, which refers to business action of bringing outsourced components back in the house. This activity happens because of the bad decision to outsource and the change of business environment but this action could build several problems that affect the business keys to gain profit. By suggesting the company to renegotiate and reorganize outsourcing contract rather than trying to backsource, we believe that these two actions also will prompt...
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