Identification of Drivers of Outsourcing Practice: A Case of Indian Organizations

As a business practice, outsourcing is flourishing in almost every conceivable domain. Organizations today outsource software development, innovation and research and development efforts and even functional areas such as marketing, human resource administration and finance and accounting. Outsourcing has offered various flexibilities to organization and they could focus attention on core capabilities. Indian industry is slowly but surely getting aware about the benefits and pitfalls of the outsourcing. Present study is aiming at identification of drivers of outsourcing and establishes relationship between them using interpretive structural modeling (ISM). The results confirm that drivers are well understood and helping managers to believe in necessity of outsourcing. The rationale is quite simple – an organization had better seek out and form alliances with companies that have mature processes in place, even in the areas of its core competencies, if it is to take advantage of flexibilities offered by outsourcing.

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