| Description |
1 online resource (9 pages) |
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text file |
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6.50 |
| Summary |
Today's rapid technological changes have transformed the role of global IT outsourcing in companies' strategies. Traditionally viewed as a cost-saving measure, IT outsourcing is also increasingly being leveraged as a strategic tool for acquiring cutting-edge innovation. This pursuit of emerging technologies and capabilities, however, has elevated the complexity of managing supplier portfolios. In this article, the authors introduce the "long-tail" strategy, an innovative IT outsourcing model that combines a few key partnerships with a dynamically changing number of smaller contracts with other suppliers that can deliver specific value propositions beyond the capabilities of the key partners. Representing a dynamic, diversified, yet disciplined approach toward outsourcing, the long-tail strategy embraces and even fosters a flow of new suppliers, so companies are continually acquiring new capabilities that enable them to prosper in turbulent business environments. The authors' extensive in-depth interviews with major companies in financial services, business services, technology, manufacturing, and energy suggest that the long-tail strategy can help diverse organizations achieve their business goals. For example, the long-tail strategy helped a major global bank establish and maintain technological leadership in the financial-services industry, and allowed Toyota Motor North America to realize rapid innovation. In order to implement the long-tail strategy successfully, companies should institute five key practices: (1) distributing responsibility within the company for scanning for new technologies; (2) nurturing relationships with new "long-tail" suppliers; (3) encouraging sales pitches from suppliers; (4) governing the entire outsourcing portfolio; and (5) designing for integration. When implementing these practices, organizations should seek to create a more proactive, entrepreneurial, and dynamic culture in IT outsourcing. If executed well, the long-tail strategy can transform IT outsourcing into a driver of innovation and value creation in an age of globalization and digitization. |
| Subject |
Business planning.
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Strategic planning.
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Planification stratégique. |
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Business planning |
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Strategic planning |
| Added Author |
Levina, Natalia, author.
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Ross, Jeanne, author.
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Lacity, Mary, author.
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Willcocks, Leslie, author.
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Goo, Jahyun, author.
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Hirschheim, Rudy, author.
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Gurbaxani, Vijay, author.
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Han, Kunsoo, author.
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Oshri, Ilan, author.
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Kotlarsky, Julia, author.
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Aron, Ravi, author.
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O'Reilly for Higher Education (Firm)
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| Standard No. |
53863MIT57206 |
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