ting with Macy’s but the supply chain of Macy’s is competing with the supply chain of Wal-Mart. The dangers enumerated by Machiavelli are not present as the companies have far greater control over the outsourcing companies than he thought prince can have on the mercenariThis is one of the most talked about business topic of our times and Machiavelli has talked at length about outsourcing in his book. According to him outsourcing of military functions to Mercenaries and auxiliaries are no good and a prince should maintain a central control over the army.

“Mercenaries and auxiliaries are useless and dangerous; and if one holds his state based on these arms, he will stand neither firm nor safe; for they are disunited, ambitious and without discipline, unfaithful, valiant before friends, cowardly before enemies; they have neither the fear of God nor fidelity to men, and destruction is deferred only so long as the attack is; for in peace one is robbed by them, and in war by the enemy” ( Machiavelli, Chapter 12)

This explanation doesn’t hold in today’s business world where most companies are outsourcing their operations to improve the bottom line. In fact the companies have moved one step ahead of what Machiavelli thought – they have built supply chains with outsourcing companies. Today in the business world Wal-Mart is not competing with Macy’s but the supply chain of Macy’s is competing with the supply chain of Wal-Mart. The dangers enumerated by Machiavelli are not present as the companies have far greater control over the outsourcing companies than he thought prince can have on the mercenarie

ol over the army.

“Mercenaries and auxiliaries are useless and dangerous; and if one holds his state based on these arms, he will stand neither firm nor safe; for they are disunited, ambitious and without discipline, unfaithful, valiant before friends, cowardly before enemies; they have neither the fear of God nor fidelity to men, and destruction is deferred only so long as the attack is; for in peace one is robbed by them, and in war by the enemy” ( Machiavelli, Chapter 12)

This explanation doesn’t hold in today’s business world where most companies are outsourcing their operations to improve the bottom line. In fact the companies have moved one step ahead of what Machiavelli thought – they have built supply chains with outsourcing companies. Today in the business world Wal-Mart is not competing with Macy’s but the supply chain of Macy’s is competing with the supply chain of Wal-Mart. The dangers enumerated by Machiavelli are not present as the companies have far greater control over the outsourcing companies than he thought prince can have on the mercenari

re enemies; they have neither the fear of God nor fidelity to men, and destruction is deferred only so long as the attack is; for in peace one is robbed by them, and in war by the enemy” ( Machiavelli, Chapter 12)

This explanation doesn’t hold in today’s business world where most companies are outsourcing their operations to improve the bottom line. In fact the companies have moved one step ahead of what Machiavelli thought – they have built supply chains with outsourcing companies. Today in the business world Wal-Mart is not competing with Macy’s but the supply chain of Macy’s is competing with the supply chain of Wal-Mart. The dangers enumerated by Machiavelli are not present as the companies have far greater control over the outsourcing companies than he thought prince can have on the mercenari

orld where most companies are outsourcing their operations to improve the bottom line. In fact the companies have moved one step ahead of what Machiavelli thought – they have built supply chains with outsourcing companies. Today in the business world Wal-Mart is not competing with Macy’s but the supply chain of Macy’s is competing with the supply chain of Wal-Mart. The dangers enumerated by Machiavelli are not present as the companies have far greater control over the outsourcing companies than he thought prince can have on the mercenariting with Macy’s but the supply chain of Macy’s is competing with the supply chain of Wal-Mart. The dangers enumerated by Machiavelli are not present as the companies have far greater control over the outsourcing companies than he thought prince can have on the mercenaries. The business of the outsourcing company depends upon the retail company and all the products are manufactured as per the retail company’s specifications.

Secondly the companies are intelligently segregating the core activities from other activities and only focus on managing the core activities. Wal-Mart core strength is not manufacturing of its product but the efficiency of its supply chain which brings the cost down due to mass purchase and low cost logistics. This cost is passed on the final customers in its stores.

One caveat probably all outsourcing company can take from book is – “A prince ought to take care never to make an alliance with one more powerful than himself for the purpose of attacking others, unless necessity compels him, as is said above; because if he conquers you are at his discretion, and princes ought to avoid as much as possible being at the discretion of any one”. ( Machiavelli, Chapter 16)