Perspectives: Limits Of The New Corporation

The strength of the virtual organization is in outsourcing and paring down to core activities--until the game changes

Everywhere we turn, it seems, management gurus are penning obituaries for the traditional corporate organization. Visionaries say today's integrated companies are lumbering dinosaurs that soon will be displaced by focused, fast, flexible companies--virtual corporations. We're told that such entities, by concentrating on best-in-class core capabilities and outsourcing slices of their activities that others do better, can integrate across the ether and disband painlessly when the job is finished.

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