Outsourcing and Strategic Outsourcing

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).