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What is Strategic Outsourcing

Chapter 152
Encyclopedia of Networked and Virtual Organizations
The strategic decision of planning the organization based on partnerships with external suppliers of goods and services, instead of developing them within the organization.
Published in Chapter:
Outsourcing and Strategic Outsourcing
Sonia Dahab (Universidade Nova de Lisboa, Portugal) and Filipe Amaral (Grupo Sumol, Portugal)
Copyright: © 2008 |Pages: 7
DOI: 10.4018/978-1-59904-885-7.ch152
Abstract
The production of a good or service frequently requires that the supplier performs a wide range of activities. The coordination between those activities implies that the firm must determine its boundaries, which means that it must define the supply chain activities that will be performed internally, and those that will be trusted to external suppliers. The process of obtaining goods and services from outside suppliers, instead of developing them within the organization, is called outsourcing (Anderson & Naurus, 1991).
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