per 1998). Today, outsourcing focuses on the strategic as opposed to the tactical or short term. (Domberger 1998; Johnson 1997; Peters, Greer & Youngblood 1998). It is becoming part of a long-term plan demanding redefining the core competencies of a firm, and creating alliances with contractors who have special expertise.
             Particular success can be seen in the growth of Mambo Graphics who are based in Sydney, Australia (Domberger 1998). Mambo produces a range of products including swimwear, clothing, watches, skiwear and accessories – and is estimated to be worth more than $100 million in Australia alone. Mambo had to reassess its business operation in 1989 upon discovering 'while there was an abundance of potential garment manufacturers, there were very few companies specialising in the highly creative design facet of the production process'. They also experienced increasing financial pressure because there was a need for more capital as they grew, but they did not want to 'sacrifice artistic integrity or the design capacity of the company by taking on an equity partner'.
             Dare Jennings and Andrew Rich (the two owners of Mambo) made the strategic decision to separate production and design by outsourcing the production side of the business to Gazal Apparel. Design and image are important to Mambo and so they have kept control over marketing (even the actual stores their products are sold in) and their trademark of creatively designed products. In summary, Domberger (1998) states Mambo have focused on and developed key design and marketing capabilities, which resulted in profitability for both Mambo and Gazal Apparel.
             In contrast, Jennifer Laabs (1998) reports 'about 25% of the people who've outsourced...indicated they've experienced disappointment'. In addition, Laabs says that no-one ever hears about the 'botched systems', the missed deadlines and the lack of communication that leads to negative outsourcing experi...