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BPO Journal

Sunday, March 18, 2007


An article in FastCompany provides examples of companies outsourcing brand invention and management - a truly core organizational function - to keep up with changing customer needs and preferences, manage the risk of staying cool and stay nimble and flexible.

Ronald Coase sought an answer to the question, "Why do firms exist?" more than thirty years and answered it in Noble-prize-winning terms of costs of transacting and internal organization. The examples in the article are evidence that as advances in technology diminish costs of transacting and firm boundaries become increasingly fluid, firms in future may well be viewed as clusters of temporary interdependencies that come together to achieve a shared economic objective.

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