MAR6004J – International Supply Chain Management

Outsourcing has become a mainstay of international supply chains. Companies routinely subcontract their functions to third-party vendors to gain competitive advantage. Outsourcing has undergone a paradigm shift from a cost centre to a revenue centre in many supply chains. The ability to use outsourcing as a strategic tool and partner with vendors has proven globally that outsourcing can be a competitive differentiator in many supply chains.

In this regard:

(A) Describe the notion of ‘core competency’ and its relevance to the understanding of outsourcing.

(B) Identify and explain the key drivers of outsourcing.

(C) Examine the barriers to outsourcing.

(D) Analyse the evolution of outsourcing during the last decade and argue whether or not outsourcing has complemented the strategic objectives of business organisations. Use relevant examples to support your arguments.

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