Outsourcing in Procurement and Supply Chain


The purpose of this concept is to introduce and provide an insight into the benefits of outsourcing in procurement and how organisations decide which activities to perform in-house and which to buy in the market. The concept also provides useful case evidence and a step-by-step implementation guidance.

Technique Overview

Outsourcing in Procurement and Supply Chain Definition

Outsourcing is "the process of contracting with the most suitable expert third party service provider" (CIPS: Outsourcing). It is the operational transfer of one or more business processes from an origin company to an external provider who then becomes accountable for the outcome of the agreed tasks (Cooke & Budhwar, 2009). Outsourcing to a foreign country is called 'offshoring' (here the provider can be external or affiliated to the firm) and to nearby countries is known as 'nearshoring'. Transfers to an external, international provider are referred to as 'offshore outsourcing' (Olsen, 2006).

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Business Evidence

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Business Application

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Professional Tools

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Further Reading

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Outsourcing in Procurement and Supply Chain References (4 of up to 20) *

  • Blanchard, D. (2011) Book highlight. Supply Chain Management: When You'd Rather Not Do It Yourself. Global Business and Organizational Excellence, Vol.30(4), pp. 64-71.
  • Cabinet Office (2011). White Paper: Open Public Services. July. [Online] Available at: www.cabinetoffice.gov.uk/sites/default/files/resources/open-public-services-white-paper.pdf [Accessed 18 October 2011].
  • Chase, R.B., Jacobs, F.R., and Aquilano, N.J. (2004) Operations Management for Competitive Advantage (10th Ed). McGraw-Hill: Boston, MA.
  • CIPS: Outsourcing.

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