Article Review: Outsourcing and Global Sourcing

Pages: 4 (1421 words)  ·  Bibliography Sources: 5  ·  Level: Master's  ·  Topic: Business  ·  Buy This Paper


[. . .] These companies remained successful because they saw "economic uncertainty as an opportunity," and kept a tight handle on corporate spending while reducing operational costs by outsourcing numerous functions, to include functions instrumental in enhancing overall corporate performance (Kumar & Sarangan, 2011). Said Kumar and Sarangan of such companies' application of the 4 Cs:

To see economic uncertainly as an opportunity, it is crucial that business and IT managers have a strong handle on costs. At the same time, these decision-makers must also have the ability to respond strategically to budget cuts without compromising on current capabilities of the organization or putting future competitiveness at risk. It is in this context that companies should look at how global sourcing can play a role in not only managing costs in the short-term, but also in providing the agility to invest for future competitiveness or change. (Kumar & Sarangan, 2011)

Annotated Bibliography

Agerfalk, P.J., and Fitzgerald, B. (2008). Outsourcing to an Unknown Workforce: Exploring Opensourcing as a Global Sourcing Strategy. Management Information Systems Quartley, 32(2).

The authors assert that global sourcing -- i.e. "opensourcing" -- is growing increasingly popular in commercial corporations, resulting in the development of a global workforce of expert contributors to the current business world, which in turn allows for enhanced competitiveness.

Bryce, D.J., and Useem, M. (1998). The impact of corporate outsourcing on company value. European Management Journal, 16(6), 635-643.

The authors discuss the risks of excessive outsourcing to the point that management of outsourcing suppliers, products and services is compromised. Nonetheless, the authors assert that properly managed outsourcing can reduce operational cost, enhance competitive strategies and increase the value of shareholders.

Chung, W.W.C., Yam, A.Y.K., and Chan, M.F.S. (2004). Networked enterprise: A new business model for global sourcing. International Journal of Production Economics, 87(3), 267-280.

The authors emphasis the imperative nature of proper management of outsourcing suppliers, encouraging outsourcing companies to adopt a new business model more suited to a global workforce, such as the Global Delivery Model (GDM). In addition, the authors assert that "the development of a new business model in an established firm will depend on the extent to which a firm leverages the factor conditions and resolving conflicts."

Kumar, R.A., and Sarangan, S. (2011). Leveraging Outsourcing during Economic Uncertainty. Infosys View Point, May, 2008.

Mol, M.J., van Tulder, R.J.M., and Beije, P.R. (2005). Antecedents and performance consequences of international outsourcing. International Business Review, 14(5), 599-617.

The authors investigate the claim that global sources potentially increases firm performance, based on a survey of 200 manufacturing firms located in the Netherlands. The authors found that while outsourcing doesn't necessarily effect firm performance, striking a balance between "lower productions costs abroad and [reducing] transaction costs locally" can enhance the economic stability of a firm. The authors go on to say that successful outsourcing is contingent on a company's ability to research and evaluate potential outsourcing suppliers.

Outsourcing. (2011). In Entrepreneur Encyclopedia. Retrieved April 25, 2011 from [END OF PREVIEW]

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Cite This Article Review:

APA Format

Outsourcing and Global Sourcing.  (2011, April 25).  Retrieved June 15, 2019, from

MLA Format

"Outsourcing and Global Sourcing."  25 April 2011.  Web.  15 June 2019. <>.

Chicago Format

"Outsourcing and Global Sourcing."  April 25, 2011.  Accessed June 15, 2019.