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What is the right outsourcing strategy for your process

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  • McIvor, Ronan

Abstract

Summary Outsourcing has become a critical strategic decision that can allow organisations to develop and leverage the capabilities required to compete in today's global business environment. This paper provides a practical framework that managers can use to identify suitable outsourcing strategies for their processes. In particular, the framework provides a mechanism for understanding, which processes should be kept internal and which should be outsourced based on both organisational capability and opportunism considerations. The logic of the framework and the sourcing strategies is illustrated through providing real case examples from organisations that participated in the research.

Suggested Citation

  • McIvor, Ronan, 2008. "What is the right outsourcing strategy for your process," European Management Journal, Elsevier, vol. 26(1), pages 24-34, February.
    • Handle: RePEc:eee:eurman:v:26:y:2008:i:1:p:24-34
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    Citations

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    Cited by:

    1. Prempeh, Kwadwo Boateng & Nsiah-Asare, Evelyn, 2017. "Evaluating the Impact of Outsourcing Strategy on Procurement Performance of Selected Technical Universities in Ghana," MPRA Paper 80191, University Library of Munich, Germany.
    2. Gunasekaran, Angappa & Irani, Zahir & Choy, King-Lun & Filippi, Lionel & Papadopoulos, Thanos, 2015. "Performance measures and metrics in outsourcing decisions: A review for research and applications," International Journal of Production Economics, Elsevier, vol. 161(C), pages 153-166.
    3. Chipalkatti Niranjan & Koch Bruce & Buchanan Bonnie G. & Doh Jonathan, 2013. "Enhancing Value in IT Services Offshoring: Real Options Matter," Asia-Pacific Journal of Risk and Insurance, De Gruyter, vol. 8(1), pages 123-147, December.
    4. Löffler, Clemens & Pfeiffer, Thomas & Schneider, Georg, 2012. "Controlling for supplier switching in the presence of real options and asymmetric information," European Journal of Operational Research, Elsevier, vol. 223(3), pages 690-700.
    5. Varadarajan, Rajan, 2009. "Outsourcing: Think more expansively," Journal of Business Research, Elsevier, vol. 62(11), pages 1165-1172, November.
    6. Luigi Cantone & Pierpaolo Testa & Svend Hollensen & Giuseppe Fabio Cantone, 2019. "Outsourcing New Product Development Fostered By Disruptive Technological Innovation: A Decision-Making Model," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(01), pages 1-45, January.
    7. McIvor, Ronan & McCracken, Martin & McHugh, Marie, 2011. "Creating outsourced shared services arrangements: Lessons from the public sector," European Management Journal, Elsevier, vol. 29(6), pages 448-461.
    8. Loïc Cohen, 2016. "The outsourcing decision process in humanitarian supply chain management evaluated through the TCE and RBV principles," Post-Print hal-01471643, HAL.
    9. Liat Raz-Yurovich, 2012. "Application of the transaction cost approach to households – the demographics of households’ ‘make or buy’ decisions," MPIDR Working Papers WP-2012-025, Max Planck Institute for Demographic Research, Rostock, Germany.
    10. Freytag, Per V. & Clarke, Ann H. & Evald, Majbritt R., 2012. "Reconsidering outsourcing solutions," European Management Journal, Elsevier, vol. 30(2), pages 99-110.
    11. Alexander Brem & Robert Elsner, 2018. "Make-Or-Buy Decisions On Technology-Intensive Products: Insights From The Consumer Goods Industry," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(06), pages 1-17, August.
    12. daryaei , javad & Hosseini Golafshan , Ahmad & Modiri , Mahmood & Gelard , Parvaneh, 2018. "Developing a Decision-Making Framework for Activities Outsourcing in Iranian State Banks," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 13(4), pages 525-545, October.
    13. Lennart Söderberg & Lars Bengtsson & Matti Kaulio, 2017. "A model for outsourcing and governing of maintenance within the process industry," Operations Management Research, Springer, vol. 10(1), pages 20-32, June.
    14. Appiah-Adu, Kwaku & Okpattah, Bernard K. & Djokoto, Justice G., 2016. "Technology transfer, outsourcing, capability and performance: A comparison of foreign and local firms in Ghana," Technology in Society, Elsevier, vol. 47(C), pages 31-39.
    15. Mehmet Altin, 2017. "A taxonomy of hotel revenue management implementation strategies," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 16(3), pages 246-264, June.
    16. Gerbl, Martina & McIvor, Ronan & Loane, Sharon & Humphreys, Paul, 2015. "A multi-theory approach to understanding the business process outsourcing decision," Journal of World Business, Elsevier, vol. 50(3), pages 505-518.
    17. Mehmet Altin, 2021. "Does resource-based view explain outsourcing intention: Revenue management perspective," Tourism Economics, , vol. 27(2), pages 292-306, March.
    18. Liat Raz-Yurovich, 2014. "A Transaction Cost Approach to Outsourcing by Households," Population and Development Review, The Population Council, Inc., vol. 40(2), pages 293-309, June.

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