Canadian companies need to sharpen their competitive edge to play successfully in the world markets, and utilizing a successfully deployed global sourcing model is the key, according to Inforica, a Canadian technology consulting firm with many Fortune 500 organizations on its client roster.
In a recently released paper, Global Sourcing: A Pragmatic View, the company called on corporate Canada to forget the cost-cutting benefits of global sourcing, traditionally called outsourcing. Inevitably there is a cost-cutting benefit, but the primary goal must be to harness that competitive edge, the paper noted. Global sourcing frees up capital, provides access to scarcely available cutting-edge talent and speeds up time-to-market, thus giving Canadian companies the capability to thrive in the global market. But be extremely selective in what is globally sourced, Inforica cautions.
“Successful executives know that core competencies are what give an organization its clear leadership position and when executed, differentiate it from competitors,” said Humayun Kabir, Managing Partner. “Essentially global sourcing today isn’t only about cost-cutting, it is about determining where it makes most sense for a task to be performed.”
This “core vs. chore” model of global sourcing is an unusual perspective. Inforica has seen many North American companies succumb to the hype of global sourcing and eagerly jump without a strategic approach. The results have sometimes been disastrous.