business model innovation design we're on a road to nowhere // on a quest to analyze and explore the design of business model innovations, i.e. 'hideous and hidden things' like organizational structures and capabilities, corporate strategies and all things related // on a yellow brick road with a girl, a lion and a straw-man wasting our time // …

Interesting Businessweek special on the future of outsourcing, asking what are the pitfalls to avoid and what are the best practices to follow.

This is a well written little article, enhanced by some good examples of U.S. companies and their experiences with outsourcing partners in India, China and the like.

There is a twist to this story, namely its focus on transformational outsourcing, i.e. the benefits of outsourcing for innovation and change processes:

[…] Many executives are discovering offshoring is really about corporate growth, making better use of skilled […] staff […] labor savings from global sourcing can still be substantial. But it’s peanuts compared to the enormous gains in efficiency, productivity, quality, and revenues that can be achieved by fully leveraging offshore talent.

[This is] a chance to turn around dying businesses, speed up their pace of innovation, or fund development projects that otherwise would have been unaffordable. More aggressive outsourcers are aiming to create radical business models that can give them an edge and change the game in their industries.