9.2 Outsourcing Benefits and RisksBenefits* Economies of scaleRisk pooling Reduce capital investmentFocus on core competencyIncreased flexibility
9.2 Outsourcing Benefits and Risks Benefits Economies of scale Risk pooling Reduce capital investment. Focus on core competency Increased flexibility
9.2 Outsourcing Benefits and Risks*open up opportunities for competitors*lose their ability to introduce new designs*preventing innovations that require cross-functional teamworkOutsourcing Risks1) Loss of Competitive Knowledge2) Conflicting Objectivesbreak
9.2 Outsourcing Benefits and Risks Outsourcing Risks 1) Loss of Competitive Knowledge 2) Conflicting Objectives open up opportunities for competitors lose their ability to introduce new designs preventing innovations that require crossfunctional teamwork break