ABSTRACT

Outsourcing has been a popular theme since the mid-1990s when the concept of organisational core competencies came to the fore. Outsourcing became so popular that many have branded it as another management ‘fad’ – particularly with a number of notable outsourcing failures being publicised throughout the business world. Many outsourcing activities have brought significant value to organisations in terms of lowering operational costs, enhancing service delivery and releasing working capital. If the right decision is made and the operational processes are carried out properly, then outsourcing can be a major source of competitive advantage. The business process is of high strategic importance and therefore needs to be controlled in-house rather than outsourced.