ABSTRACT
Decision-making involves analysing a finite set of alternatives described in terms of evaluative criteria. It helps to rank alternatives and/or select the best when all the criteria are considered simultaneously, together with their inter-related influences. The choice of activities to outsource along the value chain is one of the most important decisions a firm can make. Firstly, an activity might have various implications depending on its breadth. The activities along the value chain can be aggregated into three main blocks. The first is customer centred, focusing on acquiring, retaining, developing the customer base, and customer relationships management. Customer-centric culture lies at the core of these kinds of activities. Internal outsourcing entails organising the firm into business units under central but strategically and economically autonomous control. The reasoning behind the fourth phase may be the starting point for questioning the classification of outsourcing relationships.
