Global process industries, as well as discrete manufacturers, face a number of challenges. All are under pressure to improve productivity and reduce costs. At the same time, all need to meet strict industry standards for the environment, health and safety in addition to maintaining a skilled work force. A way in which companies can achieve these goals is to concentrate on the core of their business, while partners assume responsibility for non-core areas.

The belief that an industrial or product-based company’s strategic advantage derives from its core competencies – its high value-added internal activities – is widely accepted in strategy formulation.