Examining the outsourcing decision - A structure/agency perspective
Faculty of Business and Public Management
School of Business
Organisations adopt outsourcing for a number of different reasons. It is useful to examine the process by which organisations make such decisions and the impacting influences on the decision. The paper initially presents a perspective based around diffusion theory and argues that such theory ignores the impact of wider high level macro influences. A model is then developed incorporating such wider macro level influences to help explain why organisations make the decisions they do. It suggests that the 'outsourcing bandwagon' can be considered as derivable from external social 'structures' which impact internal agency decision. The paper finally develops a framework for categorising the major impacts on the decision process.