In recent article from Newsfactor it reported that Dell was planning to sell it factories to contract manufacturers round the globe. This re-focusing on core is a classic of outsourcing. Dell obviously doesn’t see manufacturing as a core function of the company and is looking to move it to a company that treats it as its core. This will free up capital and make the company more flexible in its approach getting hardware to consumers. Dell has recently lost its top spot in the market and, in these difficult times is using outsourcing as a mechanism of transformational change within the company.
The article then goes on to point out that HP (the worlds no. 1 maker of computers) has already done this.
During recession perhaps outsourcing should be considered more often as a way for companies not only to whether the storm but to thrive.
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