Final answer:
To become more profitable and agile through offshoring without hollowing out, a firm should strategically decide what to outsource and what to keep in-house. Routine and repetitive tasks can be outsourced, while core competencies should be kept in-house. The decision should be based on the firm's strengths, weaknesses, and long-term goals.
Step-by-step explanation:
If a firm wants to become more profitable and agile through offshoring without hollowing out, it is important to strategically decide what to outsource and what to keep in-house. One option could be to outsource routine and repetitive tasks that do not require specialized knowledge or expertise. For example, administrative tasks like payroll, data entry, and customer service can be outsourced to off-shore firms, allowing the in-house team to focus on core competencies.
On the other hand, it is advisable to keep core competencies in-house to maintain control over quality and innovation. Core competencies are unique capabilities or skills that give a firm a competitive advantage. These could include research and development, design, strategic planning, and customer relationship management. By keeping these functions in-house, the firm can retain control, protect intellectual property, and quickly adapt to market changes.
Ultimately, the decision on what to outsource and what to keep should be based on a careful evaluation of the firm's strengths, weaknesses, and long-term goals. It is important to strike a balance between cost-savings through offshoring and preserving core competencies to ensure sustainable growth.