Outsourcing Can’t Fix a Broken Organization

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Outsourcing Can’t Fix a Broken Organization

Harvard Business Review Logo

November 3, 2026

Yaroslav Danylchenko/Stocksy

Summary.   

Outsourcing can reduce costs and give companies access to specialized expertise, but it can also erode the internal knowledge and capabilities they need to adapt and compete. It can also compound

In December 2020, Daimler AG and Infosys announced with great fanfare a large outsourcing collaboration, an eight-year IT infrastructure transformation deal reported to be worth around $3.2 billion.