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Essay Details:
Essay text:
One concept that has
gained popularity is that of core competency: those things that a firm
does especially well and that give it competitive advantage. When
firms stray from their core competencies, problems often result.
To allow companies to focus on their core competencies, outsourcing
has gained in popularity. First, outsourcing reduces the need for a
company to focus on an area that is not as critical to its success as
other areas are. Second, the firm may not be able to perform a
noncore function as effectively or as cheaply as a firm specializing
in that area. Third, the ability to identify which function should be
outsourced and to work with other companies to manage those functions
may in itself be a core competency or a source of competitive
advantage...
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