Today, we can observe firms passing on business processes to third-party service providers. Some of these services include information technology, business administration, sales, marketing, and customer care. But, if the outsourcing market can provide what firms need, then why don’t firms outsource everything?
History and Benefits
There is no consensus as to whether size matters in the business arena. As early as the 1890s, however, consolidations created the giants of utilities, mining, telecommunications, manufacturing, and transportation. Throughout the following century, the predominant business model was a built-in company that has private property over its assets. In this model, the firm that owns the assets has the right to directly manage and control them.
