Does outsourcing always work? A critical evaluation for project business success

Abstract

Purpose The purpose of this paper is to deal with the importance and obstacles of outsourcing strategy in project business in terms of product development perspectives. This strategy is intrinsically analyzed and evaluated with respect to the strategic business environments. Design/methodology/approach The objective of this research is to analyze the advantages and limitations of the outsourcing that have been identified in prior studies. This research has attempted to investigate the performance implications of outsourcing strategies in terms of theoretical considerations and implementation perspectives. Findings In this study, the authors have presented a general overview of outsourcing strategies in terms of both light and dark sides of this approach. Various driving forces of outsourcing strategy along with critical success factors are articulated within project to product development perspectives. Research limitations/implications Future research could be continued to measure various performance variables such as productivity, sales, revenues, career opportunities, manifest in power struggles, change jobs, change organizational cultures, etc. in multiple case companies, which affect with the success or failure of outsourcing arrangements. Practical implications The term outsourcing is nowadays a widely known business strategy, where manufacturing firms share partly or fully of their production process with outside organizations or suppliers. The research approach as articulated within this paper would be beneficial for project business organizations and specially the product designers and project managers for planning and developing their strategic business potentials with respect to outsourcing and in-sourcing decisions. Originality/value In this paper a high-level decision-making model for outsourcing and a cause and effect type framework are demonstrated with a view to ease the decision-making process for the organizations managers.

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