Competitive Dimension of Outsourcing Relations in Global Networks

Abstract

Over the past decades, outsourcing has been an important mechanism not only to reduce costs but also to organise both production and non-core activities of the company, in order to remain competitive and efficient on the market. The globalisation of the markets has radically changed competition rules. Companies must adapt their traditional strategies and policies to an ever changing and highly instable context characterised by a broad and complex environment. The solution adopted by big corporations is the creation of global business networks where companies work and interact with partners and stakeholders to enhance strengths and exploit opportunities. In this context, competitive outsourcing emerges as a new configuration of strategic alliance based on the network structure aimed at gaining shared advantages.