Outsourcing Decisions and Models - Some Practical Considerations for Large Organizations

Outsourcing has recently spurred broad discussions due to the relatively high failure rate of outsourced activities. To analyze how organizations can increase their success rate of outsourcing activities, the authors take a two-prong approach to the outsourcing decision and execution process, covering the "why" and "how to" outsource. To determine the optimal setup, the authors introduce six outsourcing dimensions, which trigger the decision process and the subsequent procurement and execution processes. Strategic and operational considerations as well as risk implications are further elaborated.