Study of the process and problems of strategic outsourcing on-going management

PurposeTo develop a model that describes the clients' management process of strategicoutsourcing of services during its on-going phase. The study identifies and exploresproblems that occur during this phase and which influence outsourcing's effectiveness.The research studies an under-explored area and develops knowledge about themanagement of outsourcing during the on-going phase of continuous operation.Research designThe investigation focused on strategic outsourcing - of industrial maintenance -in asingle sector where such maintenance is of strategic importance, namely, in the pulp andpaper industry; however, it is expected to be of value to other industries and services.The first part was exploratory, based on a single case study, and focused on theconstruction of the model in an inductive fashion. The second part further tested theability of the model to describe the management of strategic outsourcing through threecase studies.FindingsManagement of the strategic outsourcing of services consists of a number ofactivities which influence each other and operate concurrently at different hierarchicallevels. The management process of this `stable' phase entails continuous learning andevolution. In each of the activities there are ineffective elements which originate inmanagement problems. Such problems are identified and explored in the research andwere found to originate in practices employed either by the clients or the suppliers.Research limitations/implicationsAll case studies were conducted within one group of companies, though eachcompany had independent management and the outsourcing was implementeddifferently. This approach enables the discussion about the appropriateness of thefindings to describe what happens in the outsourcing of industrial maintenance in the pulp and paper industry. Moreover the research design enables the findings to have anexpected value to the outsourcing of other services and in other industries. Finally, aresearch agenda based on the findings is suggested. It is expected to guide furtherexploration of the findings and to motivate the exploration of new tendencies inoutsourcing practices.Practical implicationsThe model can help outsourcing managers better understand the complexity,dynamism and problems of their own outsourcing management process, and improvetheir practices accordingly based on the findings.Originality/valueThe thesis addresses the on-going management of strategic outsourcing of services.Most literature provides insights into outsourcing strategy and high-level decisions(such as make/buy). Significant and dynamic activity and problems were seen to beoccurring during this on-going phase.