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Factors Determining Outsourcing Decision for American Companies Since 2010

Autor:   •  November 29, 2015  •  Thesis  •  8,648 Words (35 Pages)  •  1,112 Views

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BACHELOR THESIS ORGANIZATION & STRATEGY

What are the main factors driving the insourcing decision for previously outsourced manufacturing activities by American companies since 2010? 

                                                                FLORIS JAN KEIZER

International Business Administration

                                                        ANR: 843648

Year of Graduation: 2015

Organization and strategy

International Supply Chain Management

A.W.C. Appels

Wordcount: 6508

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Abstract

The aim of this thesis is to investigate the factors that significantly drive the insourcing decision of American companies for previously outsourced manufacturing activities. This thesis will first examine what insourcing and outsourcing are, before it investigates what the factors that affect the decision to in- or outsource are and what recent events influence these factors. These factors will be utilized in two cases, where companies made the decision to insource again. Finally, this thesis will investigate which of the factors, that influence the in- or outsourcing decision, affect the decision most significantly.

The outcome of the cases show that the difference in operational costs between in- and outsourcing are significant as well as the change in time to market. These two factors are most significant, whereas companies did not show substantial interest to the other factors. For future research in this area, this thesis recommends the consulting of executives who are dealing with this decision, to cover all aspects of the decision making.

Keywords: Insourcing, Outsourcing, Make vs. buy decision

                        


Table of Contents

Chapter 1 – Introduction                                                        Page 3

        1.1 Problem Indication                                        Page 3

        1.2 Problem Statement                                        Page 4

        1.3 Research Questions                                        Page 4

        1.4 Research Design and Data Collection                Page 5

Chapter 2 – What are outsourcing and insourcing                        Page 6

        2.1 Outsourcing                                                Page 6

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