A study of out-sourcing versus in-sourcing tasks within a project value chain

McKenna, D and Walker, D 2008, 'A study of out-sourcing versus in-sourcing tasks within a project value chain', International Journal of Managing Projects in Business, vol. 1, no. 2, pp. 216-232.

Document type: Journal Article
Collection: Journal Articles

Title A study of out-sourcing versus in-sourcing tasks within a project value chain
Author(s) McKenna, D
Walker, D
Year 2008
Journal name International Journal of Managing Projects in Business
Volume number 1
Issue number 2
Start page 216
End page 232
Total pages 16
Publisher Emerald Group Publishing
Abstract Purpose -- The purpose of this paper is to investigate a case of in-sourcing a key resource verses using the standard mode of operation of utilizing an established out-sourcing firm. The studied organisation is a large telecommunication firm in North America. The aim of the paper is to illustrate how a new approach to the organisational procurement decision making process to facilitate competitive advantage was influenced by simplicity rather than simple cost reduction. Design/methodology/approach -- Single illustrative case study testing the usefulness of the composite out-sourcing decision framework decision making framework together with a clear focus on total value adding elements of service delivery. Findings -- The analysis that in-sourcing critical tasks or processes are advantageous to the case study organization as well as to the smaller internal department that it directly impacts. Research limitations/implications -- When undertaking business projects or programs of projects, there are many cases where business processes may be outsourced or sub-contracted. While out-sourcing does, and will in the future, play a large role in cost reduction and giving the buying firm the ability to focus on core competencies, there is still the niche market to in-source critical tasks and retain critical resources. Decisions need to be based on value contribution rather than simple cost reduction. Originality/value -- This paper's value has been to illustrate some frameworks, tools and techniques used to explain how a particular insourcing/outsourcing decision was undertaken in a business project context and it explains the rationale behind decisions being made.
Subject Building Construction Management and Project Planning
DOI - identifier 10.1108/17538370810866340
Copyright notice © Emerald Group Publishing Limited
ISSN 1753-8378
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