The Perceived Impact of Outsourcing on Organizational Performance

Dean Elmuti
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Dean Elmuti: Eastern Illinois University

American Journal of Business, 2003, vol. 18, issue 2, pages 33-41

Abstract: Outsourcing is the strategic use of outside resources to perform activities that are usually handled by internal staff and resources. By using a well-managed outsourcing agreement, companies can gain in markets that would otherwise be uneconomical. This study was designed to explore why companies are undertaking outsourcing projects and identifies factors that may facilitate or impede outsourcing projects. In addition, this article examines the relationships between outsourcing strategies and organizational performance. The results show that organizations generally considered themselves successful at outsourcing. However, while they achieved significant improvement in organizational performance, they have not reached the magnitude of improvements ascribed to outsourcing.

Keywords: Production operations; outsourcing; organizational performance (search for similar items in EconPapers)
JEL-codes: R00 Z0 (search for similar items in EconPapers)

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