What term refers to the way some companies focus on what they do best and outsource other functions to key partners?

Capability sourcingis a method of executing strategic sourcing and enhancing a company's competitive position by getting access to best-in-class capabilities across the value chain, ensuring a long-term competitive advantage. Capability sourcing is a business strategy in which a company strives to be best-in-class in every organizational process and function.

The organization believes that irrefutable excellence in each business process confers competitive advantage; and if the organization can honestly declare it is unable to improve to the degree of being outstanding, it should consider outsourcing the function.

a) Keep the status quo:That is where management requires full control of service and reaps the most benefits by keeping ownership.

b) Outsource to a local service provider:The commercial case for outsourcing to a local service supplier is persuasive, and leadership does not seem to be in direct charge.

c) Establish a dedicated offshore facility:The business case here is one of the significant cost reductions, but management requires direct authority.

d) Outsource abroad:The economic case is for significant cost savings, with no direct control.