The project of insourcing before the project of outsourcing: extension of the De Boer's algorithm

Abstract

Traditional approaches to outsourcing are commonly biased towards the outsourcing decision and consequently become a self-fulfilling prophecy. Departments destined for outsourcing are picked by management with prejudice as the least valuable with little or no regard to their features and place in the internal organizational network Therefore, moving away from value chain to the analysis of relations between organizational units can aid managers better in the decision-making process. We propose extension of De Boer, Gaytan & Arroyo algorithm. Our study is based on the in-depth study of organizational process, existing literature and specific case of outsourcing. Our conclusion is that the analysis of insourcing before the outsourcing decision is needed and we propose a set of questions before the outsourcing decision is made.