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The Role of Experience for Outsourcing Evaluation

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2005

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Springer

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The Role of Experience for Outsourcing Evaluation — Impact of Individual Outsourcing Experience on the Perception of Economies of Scale, Skill, and ScopeDespite a maturing IS literature mostly explaining outsourcing, many important phenomena challenging managers in charge of outsourcing decisions remain ambiguous.In this paper, antecedents of the outsourcing decision are critically discussed focusing on the question: What is the impact of outsourcing experience on managers’ perception of economies of scale, scope, and skill? Based on an empirical survey with Germany’s Fortune 1,000 firms, it is shown that managers without prior outsourcing experience substantially overestimate the firm’s in-house competencies compared to external experts. The picture changes for managers with experience, establishing an important cultural barrier to outsourcing.

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Beimborn, Daniel; Franke, Jochen; Weitzel, Tim (2005): The Role of Experience for Outsourcing Evaluation. Wirtschaftsinformatik: Vol. 47, No. 6. Springer. PISSN: 1861-8936. pp. 431-440

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