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Moving from Make/Buy to strategic sourcing: the outsource decision process

Drury, Colin and Tayles, M. (2001) Moving from Make/Buy to strategic sourcing: the outsource decision process. Long range planning, 34 (5). pp. 605-622. ISSN 0024-6301

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Companies are paying increasing attention to outsourcing components and processes. In most of today's business environments the decision to outsource has many ramifications, not least the impact on capital budgets. On the one hand, the decision to outsource releases capital that can be used elsewhere. On the other, the decision to continue in-house keeps open strategic options for the product in question, but has knock-on effects due to the reduction in capital. However most companies separate the process of making capital allocations from the purchasing function. This paper examines how one company moved to a position where purchasing was integrated with top functions, especially capital budgeting. It achieved this by working off the strategic sourcing model described in this paper.

Item Type: Article
Additional Information: UoA 35 (Accounting and Finance) © 2001 Elsevier Science Ltd. All rights reserved.
Subjects: H Social Sciences > HF Commerce
H Social Sciences > HG Finance
Schools: The Business School
The Business School > Financial Ethics and Governance Research Group
Related URLs:

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20. It is the intention of the paper that the company is not identified
or identifiable from the material presented. While managers
were willing to co-operate with the research in the
interests of their systems development, the company’s policy
is not to be associated with any particular published material
and the researchers wish to respect this totally. Some may
say that failure to identify the company is problematic, but
the opposite position also applies. While the company is totally
anonymous a balanced and critical view of the organisation
policies, procedures and practices can be reported,
both positive and negative points can be covered.

Depositing User: Sara Taylor
Date Deposited: 22 Feb 2007
Last Modified: 28 Jul 2010 18:19


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