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Chapter 8

Outsourcing

4.1 Pros/cons

 cheaper  harder to differentiate

 better focus  loss of control

 improved customer care  data security issues

 can plug skills gaps  requires management

 can be more flexible  may be boundaries to overcome

4.2 Barriers to growth and change

Boundaries to growth and change:

 vertical boundaries – the levels of authority through which a decision has to go
through

 horizontal boundaries – the lack of goal congruence between
functions/departments

 external boundaries – boundaries between the organisation and its
customers/suppliers.

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