Strategic Outsourcing of Services: A decision and procedural framework

The 1990 have been the outsourcing of services becomes one of the best widely talked about and implemented management tool for organizational change by the corporate world. However, there is a little academic research in this area. This study (article) is aimed at bridging the research gap by identifying and addressing one of the most widely quoted issues pertaining to outsourcing of services. I.e. how does a firm decide what service activity to outsource? One of the most popular frameworks for examining the "make or buy" decision in the past has been the transaction cost analysis(TCA) framework. However, much of this research has focused on the make-or-buy decision of product manufacturing activities, to the neglect of services. Services, due to their inherent characteristics of intangibility, inseparability, heterogeneity, and perishability, and due to the unique nature of their "production" factors on satisfaction of individuals from organizations have been recognized and classified and the general model of satisfaction function and its evaluating method has been compiled. Now, in order to achieve the optimal satisfaction of the personnel of organizations, it is possible to analyze the results and optimal programming of different resources of the organization, according to the mathematical and statistical concepts and methods which has been presented in this study