The Contextual Nature of Outsourcing Drivers

  • Tapio Reponen


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 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. 1.
    Salmela, H. and Spil, T. (2006) Strategic Information Systems Planning in Inter- Organizational Networks: Adapting SISP Approaches to Network Context. In Remenyi, Dan (ed.), Proceedings of the 2nd European Conference on IS Management, Leadership and Governance, July 2006, Paris, FranceGoogle Scholar
  2. 2.
    Reponen, T. (1998) Setting Up Outsourced Information Technology Service Companies. In Strategic Sourcing of Information Systems. Edited by L.P. Willcocks and M.C. Lacity. John Wiley & Sons Ltd, pp. 327-349Google Scholar
  3. 3.
    Reponen, T. (1993) Outsourcing or Insourcing? International Conference on Information Systems (ICIS), Orlando, Florida, December 5-8, 1993Google Scholar
  4. 4.
    Lacity, M. and Hirschheim, R. (1995), Beyond the information systems outsourcing bandwagon, Chichester, WileyGoogle Scholar
  5. 5.
    Hätönen, J and Paju T. (2008) 30+ Years of Research and Practice of Outsourcing – Exploring the Past and Anticipating the Future (forthcoming)Google Scholar
  6. 6.
    Ellram, L.and Billington, C. (2001) Purchasing leverage considerations in the outsourcing decision.European Journal of Purchasing & Supply Management, 7(1), 15 – 27Google Scholar
  7. 7.
    Levina, N. and Su, N. (2008) Global Multisourcing Strategy: The Emergence of a Supplier Portfolio in Service Outsourcing. Decision Sciences, 39(3), 541-562.CrossRefGoogle Scholar
  8. 8.
    Goo, J. H., Derrick, C. and Hart, P. (2008) A Path to Successful IT Outsourcing: Interaction Between Service-Level Agreements and Commitment, Decision Science Google Scholar
  9. 9.
    Nonaka, I. (1994). A dynamic theory of organizational knowledge creation. Organization Science, 5 (1), 14-37.CrossRefGoogle Scholar
  10. 10.
    Bueno, E., and Salmador, M.P. (2003).Knowledge management in the emerging strategic business process: information, complexity and imagination. Journal of Knowledge Management, 7(2), 5 – 17CrossRefGoogle Scholar
  11. 11.
    Rauhala, L. (1986). Ihmiskäsitys ihmistyössä (The Conception of Human Being in Helping People), Helsinki, Finland: GaudeamusGoogle Scholar
  12. 12.
    Pihlanto, P (1990). The Holistic Concept Of Man As A Framework For Management Accounting Research, Turku, Finland: Turku School of Economics and Business AdministrationGoogle Scholar
  13. 13.
    Kerola, P, Reponen, T and Ruohonen, M(2003) On Interpretation of Strategic Knowledge Creation in a Longitudinal Action Research. In B Sundgren, P Mårtensson, M Mähring & K Nilsson (Eds.) Exploring Patterns in Information Management: Concepts and Perspectives for Understanding IT-Related Change, Stockholm, Sweden: Stockholm School of EconomicsGoogle Scholar
  14. 14.
    Koh,C, Ang, S. and and Straub, D.W. (2004) IT Outsourcing Success: A Psychologica´l Contract Perspective. Information Systems Research, 15(4), 356 – 373CrossRefGoogle Scholar
  15. 15.
    Galliers, R.D. and Newell, S. (2003) Strategy as Data + Sense Making. In S. Cummings & D.C. Wilson (eds), Images of Strategy. Oxford, UK: Blackwell: 164-196Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2011

Authors and Affiliations

  1. 1.Vice-Rector University ofTurkuFinland

Personalised recommendations