Deciding what, and what not, to outsource puts firms at risk of becoming less innovative by outsourcing activities that should not have been. This is one of the seven deadly sins of outsourcing.1
Firms need to be able to quickly anticipate and exploit opportunities that arise in the market, while at the same time resisting the urge to put all their eggs in the same basket. This is a frustrating issue -- one that can possibly be illustrated best by Nokia's example.
