For what kind of intermediate input/service do firms often go outsourcing? This paper develops a model of two-stage production in which economies of scope are central to the production of both the intermediate and final good. The model is able to explain the patterns of outsourcing from the degree of product differentiation, economies of scope, and economies of scale in production of the interm...

OUTSOURCING Outsourcing is a process whereby an organization contracts with an outside entity to perform some business function previously done “in-house.” Practically any function can be outsourced, from manufacturing labor to customer service. The spatial distance between the core firm and the contractor can vary greatly. Offshoring denotes an outsourcing of business functions to a contractor...

IS outsourcing is one of the major issues facing organizations in today’s rapidly changing business environment. It is often presented as an attractive business proposition to improve productivity, reduce costs and increase competitiveness. This study examined the relationship between knowledge sharing and IS outsourcing success based on the social capital theory. It shows the knowledge sharing...

The objective of this study is to demonstrate the relationship between outsourcing of core and non-core activities and integrated firm-level performance (IFLP) consisting of competitive, financial, strategic, and stakeholders’ performance. Empirical data was collected from manufacturing small and medium size enterprises (SMEs) in Quebec that outsource, using a web-based questionnaire. A linear ...

The paper deals with the factors affecting the failure of IT outsourcing and introduces new concept referred to as relative failure factor complexity (RFFC). The RFFC takes into consideration the gap in perception of both outsourcing partners; customer organisations and IT providers. The paper considers responses from seven organisations (customers) facing problems with their IT outsourcing and...

The focus of this paper is on the intersection of Environmental Responsibility (ER) and Global IT Outsourcing (GITO). GITO is well established as a business practice towards reducing costs and improving performance. ER is becoming increasingly important in global outsourcing in relation to environmental issues. The cost of energy has already increased dramatically and further increases appear l...

Purpose – The purpose of this paper is to examine the intersection of sustainability and global IT outsourcing (GITO). GITO is well established as a business practice towards reducing costs and improving performance. Sustainability issues related to carbon footprint and greenhouse gases are increasingly important for all organizations. Responsible and economic energy management is a critical bu...

The vendor firm’s body of knowledge (BoK) has been considered to be vital in IT outsourcing success since outsourcing is considered as flow of knowledge especially from vendor firms to client firms. However, previous researches mostly focused on the client firms’ perspective and less attention on vendor firms and their knowledge bases. In this paper, we investigated the impact of vendor IT firm...

The forces of globalization have influenced organizations to extend the concept of IT outsourcing to IT-intensive business process outsourcing (eSourcing). Most of the research on managing outsourcing relationships has focused either on legal contracts or on strategic partnerships. Advocating a different viewpoint, researchers like Rousseau (1995) found that in reality everyday working of contr...

The author of a scientific publication analyzes the concept "outsourcing" and chronology its development. clarifies that this appeared in literature only late 1980s. 20th century, however, outsourcing technology itself earlier — 20s century. Currently, there are many approaches to defining essence outsourcing. Many foreign Russian scientists have studied phenomenon gave their own characteristic...