Mechanics of making or buying — Pulling back the information technology engineering in-house

Information Technology companies hitherto shipping their information system have off late started strategizing in pulling back their outsourced information technology. Outsourcing was looked at technically feasible and financially viable strategy for decades. This paper looks into the phenomenon of backsourcing as an organizational innovation that is betraying the engineering marvel of outsourcing. Through several hypotheses, it tries to clarify the reason why vendors pull back their resources. This work adds value both to academicians and practitioners. It focuses on factors that triggered backsourcing and its possible impact on economy. The results suggest quality and cost of development are the factors that push and change in domain knowledge, internal practices are the pulling factors that ultimately influenced in reversing the outsourcing phenomenon.