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Reconsidering outsourcing solutions

Author

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  • Freytag, Per V.
  • Clarke, Ann H.
  • Evald, Majbritt R.

Abstract

Outsourcing continues to be an important strategic tool for firms. While outsourcing can take place without major problems, some firms experience problems. Unfulfilled expectations or new opportunities can make alterations to existing sourcing solutions necessary. Such reconsiderations may be due to internal or external changes. This article focuses on the reasons for reconsidering outsourcing activities, in addition to suggesting possible solutions that could be adopted by firms. Based on four case studies of Danish companies, four generic solutions for reconsidering outsourced activities are identified and discussed, which are based on three rival theoretical perspectives. The four generic solutions comprise: (1) maintain the original outsourcing partner; (2) obtain a new outsourcing partner; (3) backsource to own business; or (4) establish a new organisation. Finally, this paper discusses the rationales that underscore the four generic solutions, and outlines central considerations in the outsourcing process.

Suggested Citation

  • Freytag, Per V. & Clarke, Ann H. & Evald, Majbritt R., 2012. "Reconsidering outsourcing solutions," European Management Journal, Elsevier, vol. 30(2), pages 99-110.
    • Handle: RePEc:eee:eurman:v:30:y:2012:i:2:p:99-110
    DOI: 10.1016/j.emj.2011.11.002
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    References listed on IDEAS

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    Cited by:

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    2. Balakrishnan, VN & Mohamad Khan, Jamal Khan, 2018. "Influential Factors of Competitive Advantage Progression on SME Third-Party Logistics in Selangor Malaysia," MPRA Paper 89091, University Library of Munich, Germany.
    3. Lydia Bals & Jon F. Kirchoff & Kai Foerstl, 2016. "Exploring the reshoring and insourcing decision making process: toward an agenda for future research," Operations Management Research, Springer, vol. 9(3), pages 102-116, December.
    4. Martínez Mora, Carmen & Merino De Lucas, Fernando, 2017. "La estrategia de retorno de la industria española: El caso del sector calzado en Alicante, su importancia y determinantes/Reshoring the Spanish Production of Footwear: Its Importance and Determinants," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 35, pages 777-800, Agosto.
    5. Roberto Antonietti & Maria Rosaria Ferrante & Riccardo Leoncini, 2016. "Local market size, social capital and outsourcing: evidence from Emilia Romagna," Small Business Economics, Springer, vol. 47(1), pages 243-260, June.
    6. Rybak, Aurelia & Rybak, Aleksandra, 2016. "Possible strategies for hard coal mining in Poland as a result of production function analysis," Resources Policy, Elsevier, vol. 50(C), pages 27-33.
    7. Knol, Arjan & Janssen, Marijn & Sol, Henk, 2014. "A taxonomy of management challenges for developing shared services arrangements," European Management Journal, Elsevier, vol. 32(1), pages 91-103.
    8. Law, Florence, 2018. "Breaking the outsourcing path: Backsourcing process and outsourcing lock-in," European Management Journal, Elsevier, vol. 36(3), pages 341-352.
    9. Cécile Ayerbe & Nathalie Lazaric & Michel Callois & Liliana Mitkova, 2014. "The new challenges of organizing intellectual property in complex industries," Post-Print halshs-00974973, HAL.
    10. Isaria Kisoli & Wilfred Lameck, 2022. "Reconstructing the process of outsourcing solid waste management in Tanzania local government authorities," SN Business & Economics, Springer, vol. 2(8), pages 1-17, August.

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