Monday, August 08, 2005

The Coming Commoditization of Processes?

Provided is an excerpt from a thought-provoking article:

"However, a new world is coming, and it will lead to dramatic changes in the shape and structure of corporations. A broad set of process standards will soon make it easy to determine whether a business capability can be improved by outsourcing it. Such standards will also make it easier to compare service providers and evaluate the costs versus the benefits of outsourcing. Eventually these costs and benefits will be so visible to buyers that outsourced processes will become a commodity, and prices will fall dramatically. The low costs and low risk of outsourcing will accelerate the flow of jobs offshore, force companies to look differently at their strategies, and change the basis of competition. These changes are already happening in some process domains, and there are many indications that they will spread across virtually all commonly performed processes."

Source: http://www.smh.com.au/news/management-focus/the-coming-commoditisation-of-processes/2005/08/08/1123353247508.html?oneclick=true#

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