Why, When, and What to Outsource

Abstract

This chapter presents an overview of the outsourcing phenomenon, focusing on the question of why, when, and what to outsource. It provides an extensive set of guidelines for a business student to understand the nature of outsourcing. Drawing extensively on recent scholarly literature, the chapter presents a wide range of concepts. There are many causes that might lead a company to a decision to outsource. Similarly, there are many factors that contribute to an environment that is conducive to outsourcing. The question of what to outsource is answered by examining core competencies and critical success factors. The chapter also presents trends in outsourcing in specific countries and industries to help the reader understand what is possible.