Reconsidering outsourcing solutions

SummaryOutsourcing continues to be an important strategic tool for firms. While outsourcing can take place without major problems, some firms experience problems. Unfulfilled expectations or new opportunities can make alterations to existing sourcing solutions necessary. Such reconsiderations may be due to internal or external changes. This article focuses on the reasons for reconsidering outsourcing activities, in addition to suggesting possible solutions that could be adopted by firms. Based on four case studies of Danish companies, four generic solutions for reconsidering outsourced activities are identified and discussed, which are based on three rival theoretical perspectives. The four generic solutions comprise: (1) maintain the original outsourcing partner; (2) obtain a new outsourcing partner; (3) backsource to own business; or (4) establish a new organisation. Finally, this paper discusses the rationales that underscore the four generic solutions, and outlines central considerations in the outsourcing process.

► We examine in four cases firms which have experienced outsourcing problems.
► Three theoretical perspectives are used to reveal different consequences of outsourcing problems.
► Four generic solutions for reconsideration of outsourced activities are identified.
► A framework for reconsideration of outsourcing solutions is developed.
► A call for more holistic and rich theoretical perspectives is made.