The Use of Total Cost of Ownership Concepts to Model the Outsourcing Decision
- 1 July 1995
- journal article
- Published by Emerald Publishing in The International Journal of Logistics Management
- Vol. 6 (2) , 55-66
- https://doi.org/10.1108/09574099510805341
Abstract
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.Keywords
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