Core Competencies and Offshoring

by John Berry

The offshoring conventional wisdom at hand is that the first wave concentrated on cost reductions. The second wave will concern itself with core competencies; those business processes that contribute to a distinctive advantage in the marketplace are core competencies that organizations would do well to keep in house. Those processes that are not central to company business or that the organizations do not perform well are candidates for offshoring. This statement is far too broad to take at face value. The situation is actually far more nuanced, as I point out in my book, Offshoring Opportunities: Strategies and Tactics for Global Competitiveness. However, if managers plan to use the core competency concept in an offshoring decision framework, the first issue is determining what collection of business processes are or are not a core competency. Let's take a brief look at how this can be determined.

Password Protected Cutter Consortium clients, please log in:


This document is available to Cutter Consortium Resource Center clients only. Retrieve password.
If you would like further information about how to become a client, please contact us at +1 781 648 8700 or sales@cutter.com.
Core Competencies and OffshoringWed Nov 08 17:17:02 CDT 2006