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Cover Art
Author Su, Ning, author.

Title The Long-Tail Strategy of IT Outsourcing [electronic resource] / Su, Ning.

Published MIT Sloan Management Review, 2016.


Location Call No. Status
Edition 1st edition
Physical description 9 p.
Series Safari Books Online
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.
Reproduction Electronic reproduction. Boston, MA : Safari, Available via World Wide Web. 2016.
System notes Mode of access: World Wide Web.
NOTES Copyright © 2016 MIT Sloan Management Review 2016
Issuing body notes Made available through: Safari, an O’Reilly Media Company.
Other author Levina, Natalia, author.
Ross, Jeanne, author.
Lacity, Mary, author.
Willcocks, Leslie, author.
Goo, Jahyun, author.
Hirschheim, Rudy, author.
Gurbaxani, Vijay, author.
Han, Kunsoo, author.
Oshri, Ilan, author.
Kotlarsky, Julia, author.
Aron, Ravi, author.
Safari, an O’Reilly Media Company.
Subject Electronic books.
ISBN 53863MIT57206
Standard Number 53863MIT57206