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 – theThis 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

es 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 – the

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 – the

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 – the

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 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 b