Business Strategy Assignment Example | Topics and Well Written Essays - 500 words - 1

Business Strategy - Assignment Example Its close proximity to the Mexican city makes it a hotspot and many investors find it an ideal place. This is because, even though there is lots of news on criminal activities, Morelia has a good security network. In addition, it is home to Mexico’s leading learning institutions, which again make it a vital place for any investor’s growth. However, for the city to realize such a sensitive dream, both the local and national governments have to back it up because it proves to be viable for IT. From the article summarized above, the most evident concept is outsourcing. Briefly, outsourcing is a business strategy in which organizations transfer non-core activities and liabilities to external firms in order to attain a competitive advantage (Gamble, et al 115). Morelia is a city with high outsourcing capabilities since it is need of information technology. ClusterTIM is a very huge IT company in the city and has the potential to outsource. The major targets are Ecosistemas, which is digital animation company; Deipi, a renowned international IT and marketing consulting company; Konexo, a contact center; and Scio Consulting, a company credited with software development. In addition, ClusterTIM has outsourced close to 37 business entities and is in collaboration with 22 universities. This makes the dream of being an IT based city a valid dream. By outsourcing services from all the mentioned entities, Morelia, through ClusterTIM will obtain three key advantages. One, there will be an overall decrease in costs. This in return, will act as a stimulant especially for the IT sector which is a new product. Universities have fresh knowledge and thus by outsourcing their services, it will be easy to get superior talents beyond the ClusterTIM’s in house capability. In a good way, it will help eliminate idle capacity and give the chance of