A conceptual framework for understanding the outsourcing decision

Aidan Vining and Steven Globerman ()

European Management Journal, 1999, vol. 17, issue 6, 645-654

Abstract: Outsourcing is an increasingly important initiative being pursued by corporations in North America and Europe in pursuit of improved efficiency. This paper provides a conceptual framework to assist managers in identifying and implementing outsourcing decisions. In particular, the framework suggests a way for managers to identify the pre- and post-contractual risks associated with outsourcing decisions along with strategies that can be implemented in the pre-contractual stage in order to mitigate those risks. Empirical findings from the 'transactions cost' literature are referenced to illustrate elements of our conceptual framework.

Date: 1999
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