Factors and motives in outsourcing decisions

Paper in proceeding, 2007

Outsourcing is a complex and important decision: organizations with different levels of success in outsourcing include different factors into outsourcing decisions. Current literature points to several factors to consider in outsourcing decisions, though there are few studies that evaluate what factors companies view as important. The purpose of this paper is to analyze what factors Swedish companies consider important when making outsourcing decisions for manufacturing and to identify motives for outsourcing. A questionnaire and interviews were used to collect data. The companies were asked which factors were most uncertain and concerning when making outsourcing decisions and due to should be important to include in outsourcing decisions. Quality, cooperation and communication, trustworthiness and stability of the supplier, and control over products and own processes were according to the companies factors that created most uncertainty and concern. The four main motives of outsourcing are all connected to costs and reaching financial goals.