Outsourcing and Strategic Outsourcing

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Author(s): Sonia Dahab (Universidade Nova de Lisboa, Portugal)and Filipe Amaral (Grupo Sumol, Portugal)
Copyright: 2008
Pages: 7
Source title: Encyclopedia of Networked and Virtual Organizations
Source Author(s)/Editor(s): Goran D. Putnik (University of Minho, Portugal)and Maria Manuela Cruz-Cunha (Polytechnic Institute of Cavado and Ave, Portugal)
DOI: 10.4018/978-1-59904-885-7.ch152

Keywords: Information Science Reference / Media & Communications / Social Computing / Virtual Communities & Virtual Reality

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Abstract

The production of a good or service frequently requires that the supplier performs a wide range of activities. The coordination between those activities implies that the firm must determine its boundaries, which means that it must define the supply chain activities that will be performed internally, and those that will be trusted to external suppliers. The process of obtaining goods and services from outside suppliers, instead of developing them within the organization, is called outsourcing (Anderson & Naurus, 1991).

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