The report is intended to promote new thinking on the part of business leaders and to offer a blueprint for others to follow. Outsourcing represents a trend in corporate America and a major force in the economy. This is the central question posed by this study. We find that many of the leading corporations use outsourcing to advance three common strategies. Outsourcing at firms like Microsoft, Disney, Johnson and Johnson, Merck, and GE supports their continuous efforts to quickly innovate, reevaluate markets and create whole new industries.
Firms use outsourcing to broaden their international reach.
Thirdly, firms like Southwest, Berkshire Hathaway and Microsoft use outsourcing to focus more firepower and resources on the markets where they will produce the greatest return for shareholders. First, the strategic use of outside resources permeates the thinking at the leading firms. These are environments where old notions of organizational structure are challenged, and internal sourcing, outsourcing, strategic alliances, and joint ventures are equally valid options for solving business problems. Third, outsourcing is intentionally used to support grand strategy. Outsourcing allows these firms to do what they already do well even better.