Outsourcing and Organisational Learning

Among pros and cons of outsourcing there is one aspect that is critical for future of the company who decides to subcontract work.

It is organisational learning, a crucial concept for organisations who want to grow, improve, innovate, and, in knowledge-intensive sectors, survive.

If the firm outsources, it does not learn, develop competencies, accumulate knowledge, or exploit synergies, all of which will endanger the firm’s existence.