BACKSOURCING - A CASE STUDY OF A MIDDLE SIZE MANUFACTURING COMPANY TAKING AN OUTSOURCED FUNCTION BACK IN-HOUSE

Abstract

The Study Examined Back Sourcing, A Case Study Of A Middle Size Manufacturing Company Taking An Outsourced Function Back In-House. Plant Managers And Middle Managers Who Have Been Involved In The Backsourcing Process Were Interviewed To Understand The Motives For Backsourcing, The Challenges And Critical Success Factors For The Process. The Result Showed That: Dissatisfaction With The Quality Of The Products Delivered Was The Starting Point For Consideration Followed By The Possibility To Increase The Market Share By Changing The Sourcing Strategy, And Lastly Being Previously Acquired Was Also Argued To Be Another Motivation For The Company To Backsource; The Challenges Related To The Backsourcing Process Are Concerning The Cost Of The Process, The Technical Issue, To Find The Appropriate Machinery And To Find The Right Technique To Produce High Quality Products Within The Tightly Timeframe And The Risk Of Losing Relationship With Customers And Partners (In This Case A Competitor); And Empirical Result Showed That A Successful Backsourcing Project Require Strong Leadership And Management Skills. This Work Contributes To The Literature By Examining An Aspect That Has Been Considered As Being Under-Explored By The Scholar As It Focuses On A Manufacturing Company. In Addition; The Technical Issue, To Find The Appropriate Machinery And To Find The Right Technique To Produce High Quality Products Within The Tightly Timeframe Which Is The Main Difference Between Manufacturing Companies And Service Companies.