Strategy management in a global economy

Running head: MANAGEMENT
Strategy management in a global economy
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MANAGEMENT
Article: Bahli, B. and Rivard, S., 2017. The Information Technology Outsourcing Risk:
A Transaction Cost and Agency Theory-Based Perspective. In Outsourcing and
Offshoring Business Services (pp. 53-77). Palgrave Macmillan, Cham.
Most of the companies like Microsoft and IBM have adopted outsourcing for
expanding the scope and arena of the operations. Outsourcing the information has both
positive and negative connotations, affecting the profitability of the technology industry.
Conceptualizing the potential risks is a means for enhancing the awareness of the readers
about the challenges, which the companies encounter while conducting the outsourcing
activities (Bahli and Rivard 2017). Risk management framework is used by the industry for
mapping the intensity of the risks and its impact on the overall productivity. Consideration of
the actual scenarios is an aid in terms of enriching the knowledge about overcoming the
external challenges according to the needs, demands and requirements of the stakeholders.
Hiring the agents, through negotiation, is a direct initiative towards expanding the dynamics
of the business, adding diversity into the operations of the industry. Mention can be made of
Microsoft Company, who holds meeting for conducting audits for the planned strategies.
Comparative analysis of Microsoft and IBM regarding value chain analysis
In case of Microsoft, hiring numerous suppliers from overseas borders expands the
scope and arena of the supply chain network. Intelligent cloud computing systems is
assistance in terms of adding digitalization into the business. Liu and Xu (2017) is of the
view that Original Equipment Manufacturers (OEM) expand the distribution channel. On the
other hand, machining, packing, assembling and testing governs the supply chain network of
IBM. Technology is assistance in terms of selecting the raw materials and applying business
models for developing customer loyalty, contributing to the growth and development of the