A quantitative approach to the outsourcing‐insourcing decision in an international context

Outsourcing manufacturing and services to differing locations throughout the world is a common practice today. Yet, very little research has dealt with the known risks of outsourcing when it takes place between business organizations in differing countries or in an international context. This study presents a quantitative model that permits the inclusion of international risk factors in the outsourcing‐insourcing decision. A Fortune 500 firm case study is used to illustrate the informational efficacy of the decision model.