Theories of Outsourcing
- Theories
- Economic Theory
- International trade
- What is international trade
- Mercantalism
- Classical Trade Theory
- Absolute Advantage Theory
- What is the Comparative Advantage Theory?
- Factor Proportion Theory
- Heckscher-Ohlin theory
- Product Life Cycle Theory
- Theories of Outsourcing
- What is the Theories of Outsourcing?
- What is the Transaction Cost Economics Theory?
- What is the Agency Theory?
- What is the Knowledge based theory?
- What is the Self-regulation Theory?
- What is the Social cognitive theory?
- What is the Leader-Member Exchange Theory?
- Technology adoption Theories
What are the Theories of Outsourcing ?
The outsourcing process is a complex structure consisting of various activities and sub activities, as well as includes in many managerial dilemmas. Outsourcing theories are evolved to understand the reason and outcomes of outsourcing.
However, the main three motivation of outsourcing as observed above are cost savings, outcome value to the client and to successfully meet the client’s objective. In order to drive these motivations, several theories of outsourcing have been discussed in the literature.
However, this study discussed three main theories that would be relevant to the present study which would give a brief idea on what to outsource and how to internalized outsourcing activities.
The first theory is Transaction cost Economies, Agency theory and knowledge based theory (Reitzing & Wagner, 2010; Tiwana & Bush, 2007; Rai, Keil, Wullenweber, 2012).