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OUTSOURCING STRATEGY: A RECENT LITERATURE REVIEW AND MODEL UPDATE

By
LINA FERIA
BUAD 591

CALIFORNIA STATE UNIVERSITY, FULLERTON
Abstract

The importance of including an outsourcing strategy in the overall firm's operations has become increasingly important over the last decade. Companies in the U.S. pay about $68 billion every year to other companies for outsourced services and although a major part of these contracts succeed, there is an increasing concern due to recent broken deals. A recent study shows that 80% of companies that outsource their customer based functions are failing to meet their cost savings targets. Usually companies fail to budget hidden outsourcing costs such as customer dissatisfaction that can eventually jeopardize the future of the firm. In this paper I reviewed the most current literature on outsourcing and built a model that includes the principal four factors influencing the success of outsourcing strategies: the firm's Comparative Advantage,......

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Approximate Word Count: 4664
Approximate Pages: 19 (250 words per double-spaced page)

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