The Contextual Nature of Outsourcing Drivers



Outsourcing has been used throughout the history in different operations, resulting in multi-partner networks. Complexity has continuously grown in these demand-supply chains. Therefore, outsourcing is increasingly human interaction, where trust, collaboration and expertise are needed. The development to this stage has several different stages: from awareness through bandwagon effect to virtual organizations. The nature of the change is from cost savings through resource sharing to global survival. Many details in outsourcing processes may be on contract bases, but the overall development needs relationship management and trust. The drivers of outsourcing are increasingly the opportunities to achieve business goals, to execute strategies and to enhance innovations. Traditionally outsourcing has been focused on processes that been standardized and do not provide a competitive advantage to companies. With clear partnering arrangement, also more valueadding and varying processes can be outsourced. The paper studies this change and presents empirical evidence on the importance of close networking.


Psychological Contract Virtual Organization Contextual Nature Marketing Communication Strategic Knowledge 


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© Springer-Verlag Berlin Heidelberg 2011

Authors and Affiliations

  1. 1.Vice-Rector University ofTurkuFinland

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