Outsourcing – A Review for Research and Practical Applications
International Journal of Business and Economics Research
Volume 7, Issue 1, February 2018, Pages: 20-24
Received: Feb. 4, 2018; Accepted: Feb. 16, 2018; Published: Apr. 19, 2018
Views 1491      Downloads 103
Sreedevi R., Department of Production and Operations Management, Indian Institute of Management Bangalore, Bengaluru, India
Tushar Tanwar, Department of Decision Sciences, Indian Institute of Management Bangalore, Bengaluru, India
Article Tools
Follow on us
There is an increasing need for firms to have a sustainable competitive advantage and outsourcing is one of the most important strategic tools for firms to gain a competitive edge. On studying the literature, it is identified that there are varied theoretical perspectives of outsourcing, with cost savings not being the sole reason for firms to outsource production. Based on the rich body of available literature, the types of outsourcing, factors influencing outsourcing decisions, the pros and cons of outsourcing and the strategic choices to outsourcing problems have been presented in this paper.
Outsourcing, Theoretical Views, Competitive Advantage
To cite this article
Sreedevi R., Tushar Tanwar, Outsourcing – A Review for Research and Practical Applications, International Journal of Business and Economics Research. Vol. 7, No. 1, 2018, pp. 20-24. doi: 10.11648/j.ijber.20180701.13
Copyright © 2018 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Ahearne, M. and Kothandaraman, P., 2009. Impact of outsourcing on business-to-business marketing: An agenda for inquiry. Industrial Marketing Management, 38 (4), pp. 376-378.
Lewin, A. Y., Massini, S., & Peeters, C. (2009). Why are companies offshoring innovation? The emerging race for global talent. Journal of International Business Studies, 40 (6), 901-925.
Manning, S., Massini, S., & Lewin, A. Y. (2008). A dynamic perspective on next-generation offshoring: The global sourcing of science and engineering talent. Academy of Management Perspectives, 22 (3), 35-54.
Hatönen, J., & Eriksson, T. (2009). 30+years of research and practice of outsourcing— Exploring the past and anticipating the future. Journal of International Management, 15 (2), 142-155.
Que´lin, B., & Duhamel, F. (2003). Bringing together strategic outsourcing and corporate strategy: Outsourcing motives and risks. European Management Journal, 21 (5), 647-661.
Sharma, A., & Loh, P. (2009). Emerging trends in sourcing of business services. Business Process Management Journal, 15 (2), 149-165.
Arnold, U. (2000). New dimensions of outsourcing: A combination of transaction cost economics and the core competence concept. European Journal of Purchasing and Supply Management, 6, 23-39.
World Trade Organization (2005) Offshoring services, recent development and prospects, Chapter 3C, World Trade Report 2005, Geneva, pp. 265-94.
Grossman, G. M. and Helpman, E., 2005. Outsourcing in a global economy. The Review of Economic Studies, 72 (1), pp. 135-159.
Mora, D. C., Cano, A. T. (2012). Why do some firms contract out production? Evidence from firm-level panel data. Applied Economics, 44, 1631-1644.
Robinson, P. (2008). Why settle for less? 2008 outsourcing report. Deloitte MCS Ltd.
Benito, G. Dovgan, R. G., Lawrence, S. (2011). Offshore Outsourcing: A Dynamic, Operation Mode Perspective.
Kimura, F. and Ando, M. (2005) Two-dimensional fragmentation in East Asia, conceptual framework and empirics, International Review of Economics and Finance, 14, 317-48.
McIvor, R., Humphreys, P., McKittrick, A., & Wall, T. (2009). Performance management and the outsourcing process: Lessons from a financial services organisation. International Journal of Operations and Production Management, 29 (10), 1025-1048.
Freytag, P. V., Ann, H. C., Majbritt, R. E. (2012). Reconsidering outsourcing solutions. European Management Journal, 30 (2), 99-110.
Kavcic, K., & Tavcar, M. I. (2008). Planning successful partnership in the process of outsourcing. Kybernetes, 37 (2), 241-249.
Tien-Chin Wang, Ming-Fa Chen, Research of Integrating RBV and TCE to Explore Outsourcing Decision of TMT, International Journal of Economics, Finance and Management Sciences. Vol. 4, No. 6, 2016, pp. 378-383.
Caniëls, M. C. and Roeleveld, A., 2009. Power and dependence perspectives on outsourcing decisions. European Management Journal, 27 (6), pp. 402-417.
McIvor, R., 2008. What is the right outsourcing strategy for your process?. European management journal, 26 (1), pp. 24-34.
Williamson, O. E. (1985). The economic institutions of capitalism: Firms, markets and relational contracting. New York: Free Press.
Vining, A., & Globerman, S. (1999). A conceptual framework for understanding the outsourcing decision. European Management Journal, 17 (6), 645-654.
Prahalad, C. K., & Hamel, G. (1990). The core competence of the corporation. Harvard Business Review, 68 (3), 79-91.
Dyer, J. H., & Singh, H. (1998). The relational view: Cooperative strategy and sources of interorganizational competitive advantage. Academy of Management Review, 23, 660-679.
Gadde, L. E. and Håkansson, H., 2001. Supply network strategy. Wiley & Sons, Ltd. New York 2001.
Gadde, L.-E., & Jonsson, P. (2009). Outsourcing and supply network performance –Consequences of sourcing and producing in low cost countries. IMP Conference, .
Grossman, G. M. and Helpman, E., 2002. Integration versus outsourcing in industry equilibrium. The Quarterly Journal of Economics, 117 (1), pp. 85-120.
Kimura, F., 2001. Fragmentation, internalization, and interfirm linkages: Evidence from the micro data of Japanese manufacturing firms. In Global production and trade in East Asia (pp. 129-152). Springer, Boston, MA.
Holl, A. (2008) Production subcontracting and location, Regional Science and Urban Economics, 38, 299-309.
Carson, S. J. (2007). When to give up control of outsourced new product development. Journal of Marketing, 71 (1), 49-66.
Barthe´lemy, J., & Que´lin, B. V. (2006). Complexity of outsourcing contracts and ex post transaction costs: An empirical investigation. Journal of Management Studies, 43 (8), 1775-1797
Useem, M. (2000). Leading laterally in company outsourcing. Sloan Management Review, 41 (2), 25-36.
Lonsdale, C., & Cox, A. (2000). The historical development of outsourcing: The latest fad? Industrial Management and Data Systems, 100 (9), 444-450.
Syed A. Rehman Khan, Zhang Yu, Chen Xi, Drivers of the Successful Green Manufacturing Outsourcing Decisions in U. S Companies, Advances in Applied Sciences. Vol. 2, No. 5, 2017, pp. 75-79.
Masaaki, K., Janet Y. M. (2004). Global sourcing strategy and sustainable competitive advantage, Industrial Marketing Management, 33 (1), 7-14.
Hans W. Gottinger, Vertical Competition and Outsourcing in a Supply Chain, International Journal of Business and Economics Research. Vol. 4, No. 6, 2015, pp. 315-322.
Barthelemy, J., 2003. The seven deadly sins of outsourcing. The Academy of Management Executive, 17 (2), pp. 87-98.
Kakabadse, N., & Kakabadse, A. (2000). Critical review – Outsourcing: A paradigm shift. Journal of Management Development, 19 (8), 670-728.
Shi, Yuwei (2007). Todays solution and tomorrows problem: The business process outsourcing risk management puzzle. California Management Review, 49 (3), 27-44.
Veltri, N., Carol, F., Saunders, S., & Kavan, C. B. (2008). Information systems backsourcing: Correcting problems and responding to opportunities. California Management Review, 51 (1), 50-76.
Narasimhan, R., Narayanan, S. and Srinivasan, R., 2010. Explicating the mediating role of integrative supply management practices in strategic outsourcing: a case study analysis. International Journal of Production Research, 48 (2), pp. 379-404.
Whitten, D., Chakrabarty, S., & Wakefield, R. (2010). The strategic choice to continue outsourcing, switch vendors, or backsource: Do switching costs matter? Information and Management, 47, 167-175.
Science Publishing Group
1 Rockefeller Plaza,
10th and 11th Floors,
New York, NY 10020
Tel: (001)347-983-5186