Influences on Outsourcing and Outcomes: Insights from the Telecommunications Industry

This paper presents findings from an analysis of the experiences of three UK telecommunications companies that have embarked upon extensive outsourcing. Transaction cost economics and the resource-based view were used to derive a theoretical framework to determine the key influences on the outsourcing process and the outsourcing outcomes in the three case companies. The findings have shown that those companies that developed collaborative relationships with their suppliers achieved higher levels of success with outsourcing. The findings challenge some of the prescriptions of transaction cost economics in relation to outsourcing, particularly in the area of inter-organisational collaboration. The findings have also challenged the value of the core/non-core logic as a basis for outsourcing. Furthermore, the research has identified the influence of political motivations on outsourcing as an important area for further research.