Outsourcing of Manufactoring R&D Functions - Motives and Results (in Finnish with English abstract and summary)

Jyrki Ali-Yrkkö,

No 1071, Discussion Papers from The Research Institute of the Finnish Economy

Abstract: This study analyses the motives and results of outsourcing. According to the results, companies have pursued outsourcing for a variety of reasons. Cost savings are the major driving force behind the outsourcing of production function. Increased flexibility, focusing and additional capacity are other important motives. In most cases, R&D outsourcing is driven by knowledge acquisition, but increasing R&D capacity and increasing flexibility are also important motives. In addition to outsourcing motives, another major result of the study concerns the results of out-sourcing. Approximately 50% of companies have completely achieved the original goals of outsourcing. Moreover, the targeted cost savings have been completely achieved in 40% of cases.

Keywords: outsourcing; production; research and development; services; motives; success (search for similar items in EconPapers)
Pages: 16 pages
Date: 2007
New Economics Papers: this item is included in nep-ino, nep-knm and nep-tid
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