Understanding knowledge re-intergration in back sourcing

Backsourcing is the process where a client firm brings previously outsourced services from a supplier back in-house. Traditionally, the existing literature on backsourcing has focused on how firms reach the decision to bring back previously outsourced services. In this paper, we move beyond focusing on IT backsourcing decision to explore the process of backsourcing from a knowledge perspective. The predominant view in the relevant literature argues that the re-acquisition of knowledge by a client firm during backsourcing takes place similarly to knowledge acquisition by a supplier in a typical outsourcing process. In this paper, we argue that knowledge re-integration in backsourcing occurs differently from outsourcing projects mainly because of the existence of knowledge asymmetries between the client and the supplier. By examining seven backsourcing events, we reveal that knowledge transfer and re-integration in backsourcing emerges as a coordinative activity, complementing knowledge transfer mechanisms reported in the IS outsourcing literature

East, west, would home really be best? On dissatisfaction with offshore-outsourcing and firms' inclination to backsource

With so many firms seemingly disenchanted with their experiences of offshore outsourcing one may well wonder why relatively few of these firms choose to ‘backsource’ – i.e., bring their offshored operations back in-house. Of all sourcing decisions that firms take, backsourcing is perhaps the least understood and least researched. In this article we draw on the behavioral theory of the firm (BTF) to propose a new model in which differences in firms' inclination to backsource are ascribed to the level of dissatisfaction at not having achieved offshoring aspirations. Building on BTF concepts of bounded rationality, problemistic search and satisficing decisions, the model suggests that how this dissatisfaction with offshoring affects a firm's inclination to backsource is dependent on managerial expectations regarding the technical challenges of reintegrating activities and the possible financial losses and decline in quality following backsourcing, as well as on internal political support and financial slack for backsourcing. SEM analysis of data from U.S. and U.K. firms shows support for the model. The study highlights the importance of recognizing the role of managerial perceptions and biases and subgroup political relations in shaping firms' backsourcing behaviors. We also discuss the study's contributions to research and practice

Innovation Through IT and Business Process Outsourcing – Literature Review

Innovation is increasingly expected in today’s ongoing outsourcing relationships. While prior studies made considerable strides to examine innovation through outsourcing, the research landscape remains highly fragmented. In this review, we bring together and analyse prior research examining this emerging phenomenon in the contexts of IT outsourcing (ITO) and business process outsourcing (BPO). We focus on articles published between 1997 and 2018 in the top outlets across information systems (IS), management, and related disciplines. Our contribution is threefold: First, we present an overview of the key literature on this topic. Second, we identify and document three different scopes of achievable innovation through outsourcing, associated firm-specific intentions and capabilities, and relationship governance structures conducive to such value creating activities. Third, we put forward propositions for future research on innovation through outsourcing

The Strategic Supply Chain Management in the Digital Era, Tactical vs Strategic

The perspective of procurement and supply chain management is changing dramatically; traditionally, it was seen as a support function; however, the procurement function is receiving increased attention and investment as an essential contributor to the strategic success and a business enabler. While an end-to-end digital supply chain is an opportunity as it unleashes the next level of strategic growth and involves minimal investment in infrastructure, it is still a challenge to optimize and transform. Furthermore, the recent pandemics and geopolitical disruptions of Covid-19, the Ukraine-Russian war, Brexit and the US-China trade war; have structurally changed the global economy and revealed a new risk assessment that will result in the re-introduction of buffers, boundaries across industries and a partial return to regionalization with sort of de-globalization in which existing just-in-time getting replaced by just-in-case strategy