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Strategic outsourcing: evidence from British companies

Strategic outsourcing: evidence from British companies Outsourcing has become an increasingly popular option for many organisations. But they vary in terms of activities being outsourced, reasons for and benefits from outsourcing, and how the decision was made. This article presents an empirical research on 14 companies. It found out: in most cases it was the “peripheral” support activity being outsourced with cost reduction as the primary driver; outsourcing decision was being made early in the process without active involvement of the in‐house provider; and there were problems in supplier selection and management. The research identified pre‐outsourcing decision process and post‐outsourcing management as the two key areas that gave cause for concern, and offered recommendations for improvement. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Marketing Intelligence & Planning Emerald Publishing

Strategic outsourcing: evidence from British companies

Marketing Intelligence & Planning , Volume 18 (4): 7 – Aug 1, 2000

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Publisher
Emerald Publishing
Copyright
Copyright © 2000 MCB UP Ltd. All rights reserved.
ISSN
0263-4503
DOI
10.1108/02634500010333398
Publisher site
See Article on Publisher Site

Abstract

Outsourcing has become an increasingly popular option for many organisations. But they vary in terms of activities being outsourced, reasons for and benefits from outsourcing, and how the decision was made. This article presents an empirical research on 14 companies. It found out: in most cases it was the “peripheral” support activity being outsourced with cost reduction as the primary driver; outsourcing decision was being made early in the process without active involvement of the in‐house provider; and there were problems in supplier selection and management. The research identified pre‐outsourcing decision process and post‐outsourcing management as the two key areas that gave cause for concern, and offered recommendations for improvement.

Journal

Marketing Intelligence & PlanningEmerald Publishing

Published: Aug 1, 2000

Keywords: Outsourcing; Decision making; Supplier relations; United Kingdom

References