In an attempt to increase the efficiency and quality of service, more and more companies are outsourcing to third-party suppliers, some key business processes such as human resources, information technology and procurement. The universe of potential suppliers of a wide and varied, consisting of experts from local and offshore suppliers with relatively low labor costs and global suppliers, who can use sophisticated management techniques and technologies. The challenge for clients to understand their own needs and identify suppliers whose capabilities and goals are best in line with their needs. Draws on extensive research to identify three potentially critical areas of competence of the supplier: delivery expertise, competence transformation, and relationship competence. Benchmarking supplier capabilities against their strategic and operational intentions, the company can work to establish relationships that support its business objectives. "Hide
by Mary Lacity, Leslie P. Willcocks, David F. Feeny Source: MIT Sloan Management Review 10 pages. Publication Date: April 1, 2005. Prod. #: SMR169-PDF-ENG
Related Case Solutions & Analyses:
AMD: Customer-Centric Approach to Innovation
Wal-Mart Tries on Cheap Chic
ING Insurance AsiaPacific
Strategy of the Firm Under Regulatory Review: The Case of Chilectra
Nobody on the Podium: Lessons about Leadership from the Orpheus Chamber Orchestra (Video)
To Serve or Create: Strategic Orientations Toward Customers and Innovation
Project Management
South American Adventures Unlimited
China Telecom (Hong Kong) IPO: Money for Nothing?
Aluminum Smelting in South Africa: Alusaf’s Hillside Project
