Managing reversed (global) outsourcing – the role of knowledge, technology and time

Abstract

Purpose Against the recent trend toward reversed global outsourcing, the purpose of this paper is to provide insights on how the internal process can be handled once the decision on reverse outsourcing has been made. The authors focus in particular on in-house knowledge and technology requirements. Design/methodology/approach To explore the topic at hand, the researchers conducted in-depth semi-structured interviews with five companies operating in two different industry sectors. Findings Reversed outsourcing accentuates challenges relating to retained knowledge. When embarking on reversed outsourcing, companies need to acknowledge the effort to revive and renew capabilities in order to perform technical operations and advanced manufacturing production. Research limitations/implications The research is based on case studies in a Scandinavian context. Further empirical research from other high-cost locations is needed to validate the findings. Originality/value Explorative qualitative research is scarce in the emergent literature on reversed outsourcing. The paper provides practical and theoretical insights into how to handle diminishing knowledge in companies that are re-evaluating their sourcing strategies. It adds a knowledge dimension within the emergent literature. A framework for key success factors and propositions is also provided.

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