Business service outsourcing: An evolution of concentration on core business concepts and transaction cost economies
Juma'h, Ahmad H.
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Present and evaluate the literature with respect to business service outsourcing (BSO), with a particular concentration on a common form of BSO, information technology (IT). The review defines the issues with respect to BSO in terms of drivers and motivations, as well as internal and external implications for BSO companies and their contractors. BSO is an evolution of transaction cost theory and concentration on core business concepts. Although there are several attempts to explain when a company should outsource, these theoretical frameworks are difficult to apply in practice since satisfaction is a function of expectation and the identification of activities as core or commodity is not straightforward.