The Perilous Effects of Capability Loss on Outsourcing Management and Performance

The recent industrial revolution has witnessed outsourcing of manufacturing and business activities as a pivotal business practice. But alarmingly high proportion of outsourcing activities is not generating optimal results. To achieve dramatic cost saving objectives, many outsourcing activities are interconnected with the organization's resources, and cause the dismantling of the resources which direct the organization to an operational capability loss on account of an outsourcing firm. Amazingly, very little research has been conducted regarding this issue if capability loss which is intermittently correlated with the outsourcing firm. The purpose of this study is to deal and pursue with this contrition. It is possible to avoid the seven deadly sins of outsourcing by a dynamic evaluation of the initiatives of outsourcing activities. Outsourcing provides us the advantage of double out the net income while the revenue remains the constant.