Article Published In Vol.4 (March-April-2016)

Contextualizing Outsourcing and Development from a Theoretical and Practical Perspective

Author : Wanjugu Wachira, Michael Brookes and Richard Haines

For some time now more rigorous and extensive debates about outsourcing and development have taken place. This has occurred due to unfavourable policy formulation and implementation which has resulted in the increased poverty levels and low economic growth rates that are believed to characterise developing countries. However, changes from ‘neoliberal’ philosophy and zeal about specifically market-driven approaches have created room for more informed discussions to take place. This study evaluated contextualizing outsourcing and development from a theoretical and practical perspective through the use of secondary data collection method. The findings suggest that there is a relationship between development and the practice of outsourcing. Domestic and offshore outsourcing strategically executed can yield successful outcomes. Key aspects that should be considered to ensure successful outsourcing outcomes are outsourcing relationships, ensuring post-purchase satisfaction, managing the change process, reduction of transaction costs, managing distribution channels, securing the correct type of resources and selecting the appropriate outsourcing model to adopt. The International Division of Labour has led to the creation of job opportunities in developing nations as well as knowledge and skill transfer and job loss in developed countries.

Keywords: Outsourcing and Development.