The Use of Total Cost of Ownership Concepts to Model the Outsourcing Decision

The outsourcing decision considers the issue of whether an organization should perform certain activities internally or purchase these services from third parties. One of the key issues in outsourcing is the potential for cost reduction. This paper suggests the use of total cost of ownership (TCO) analysis as an excellent approach for understanding the true cost implications of the outsourcing decision, rather than focusing on price.

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Year of publication:	1995
Authors:	Ellram, Lisa M. ; Maltz, Arnold B.
Published in:	The International Journal of Logistics Management. - MCB UP Ltd, ISSN 1758-6550, ZDB-ID 2069452-0. - Vol. 6.1995, 2, p. 55-66
Publisher:	MCB UP Ltd
Subject:	Outsourcing \| Costs \| Make v. buy \| Production economics

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Type of publication:	Article
Type of publication (narrower categories):	research-article
Language:	English
Other identifiers:	10.1108/09574099510805341 [DOI]
Source:	Other ZBW resources

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