Porters Model of National Competitive Advantage Essay - 14

Porters Model of National Competitive Advantage - Essay Example The paper tells that a number of studies conducted for the last ten years reveal that outsourcing of information technology permits the companies to decrease their high expenses and boost their productivity. Through information technology, the firms are in a position to enjoy the flexibility and as a result, enhancing the business performance. USA, China, UK, Japan, and Germany are all experiencing information technology outsourcing growth. IT outsourcing has been around for some time and is significantly affecting these countries’ and the world economy at large. However, it is true that outsourcing IT services offshore brings with it new risks and challenges. The Diamond Porter model is used in this study to determine the competitiveness of IT outsourcing in USA, China, Germany, Japan, and the UK. The model is used to examine the basic industries in the countries. Since Porter’s work was published, about 20 years ago, there has been a multitude of response to his work. Some research studies tallied with his work while others disagreed. However, from the studies, it is evident that some of Porter’s ideas hold while others do not apply in the today’s modern business settings. In his research, Oz applied Porter’s Diamond Model to monitor the competitive advantage of five industries in Turkey. His findings were tandem with Porter’s ideas. The Turkish customers were demanding and as a result forced the companies to upgrade to meet the demand of the consumers. The intense rivalry in the Turkish domestic market for clothing and glass pushed the companies to be in a position to compete favorably in the international markets. On the other hand, the non-competitive automobile companies in the Turkish market remained non-performers in the international markets.