Levels of Outsourcing and Offshoring: from Law and Logic to Systems Integration

The purpose of this paper is to examine the evolution of offshoring and outsourcing over time and highlight strategic considerations underpinning this process in companies. On the basis of four case studies of Danish and German industrial companies, this paper develops a holistic framework conceptualizing various levels of outsourcing and offshoring as well as factors driving the transition between these levels. The framework adds to better understanding of the process and challenges the linear nature of it and suggests that ‘backsourcing’ and repatriation of activities should receive more attention in the future research on the subject.