Financial Drivers of Domestic Outsourcing: Case Study of Food Services in the San Francisco Bay Area

Jessie HF Hammerling

Institute for Research on Labor and Employment, Working Paper Series from Institute of Industrial Relations, UC Berkeley

Abstract: This paper examines drivers of domestic outsourcing through a case study of food services. It demonstrates that outsourcing is not necessarily motivated by clients’ desire to reduce costs or improve efficiency, and suggests that in some cases outsourcing may cost more than inhouse production. Instead, this study points to other kinds of financial incentives to outsource food services. For tech companies, an important incentive is to limit employee headcount in order to improve productivity metrics and thereby increase a company’s appeal to financial stakeholders. For universities, an important incentive is to obtain financing for facilities improvements from contractor companies.

Keywords: Social and Behavioral Sciences; firms and organizations (search for similar items in EconPapers)
Date: 2022-01-08
New Economics Papers: this item is included in nep-agr and nep-dem
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.escholarship.org/uc/item/9sz919zw.pdf;origin=repeccitec (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cdl:indrel:qt9sz919zw

Access Statistics for this paper

More papers in Institute for Research on Labor and Employment, Working Paper Series from Institute of Industrial Relations, UC Berkeley Contact information at EDIRC.
Bibliographic data for series maintained by Lisa Schiff ().