Outsourcing Decision in Capabilities Perspective

Abstract

There are many theories and framework which suggest performance link to strategy and / or resources. In order to succeed in the market, the organization must transform its core strengths into competitive advantages so that it becomes harder for its rivals to snatch its customers and market share. This paper has attempted to integrate the issue of weakness emanating out of the capability frame in terms of strategic decision in outsourcing. With the help of our proposed “Integrated Decision Making Model” for strategic outsourcing,, significant advantage can be achieved by directing investments and efforts in areas where firms perform better as compared to others. Over time, a continued effort to develop core competencies by building strategic capabilities (strengths) and minimizing strategic liabilities (weaknesses), bar the present or future competitors to expand into the company's areas of interest, thus helps to defend the strategic competitive advantages lying in the firm's value chain.

Keywords

• Outsourcing Strategy
• Strategic Outsourcing
• Strategic Capabilities
• Strategic Liabilities
• Parity Effect
• Value Chain
• Strategic Competitive Advantage
• Organization Resources
• Resources' Rarity & Value
• Competitive Intensity
• Competitive Heterogeneity
• Robust Advantage
• Core Competencies
• Integrated Decision Making Model Make or Buy
• Business Cost