Understanding the Process of Backsourcing: Two Cases of Process and Product Backsourcing in Europe

Understanding the Process of Backsourcing: Two Cases of Process and Product Backsourcing in Europe

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Abstract

Backsourcing, defined generally as bringing services outsourced to a third party back inhouse, is now a growing phenomenon. The decision to backsource has several significant implications for an organization, as it requires the organization to manage organizational change, reintegrate knowledge, and develop new capabilities and competences. Two case studies are provided that describe two essentially different examples of backsourcing. The first case study (MediaCorp) deals with the example of backsourcing IT hosting services, which is considered a business process, whereas the second case study (ITServCorp) talks about bringing an IT product development back in-house.

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