Chapter

Why Make When You Can Buy?

Simon Domberger

in The Contracting Organization

Published in print November 1998 | ISBN: 9780198774570
Published online November 2003 | e-ISBN: 9780191596148 | DOI: http://dx.doi.org/10.1093/0198774575.003.0001
 Why Make When You Can Buy?

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This first section of the book introduces the central issues of contracting out by asking ‘Why make when you can buy?’ This chapter begins by outlining a handful of contracting examples, most of which have been successful (Microsoft customer support, USA; Mambo Graphics, Australia; Marks & Spencer, UK), but one outright failure is also included (vehicle maintenance in Fairfax County, Virginia, USA). The chapter goes on to suggest what may have been the crucial elements of contracting decisions that resulted in success or failure. This provides an initial glimpse of the themes, the development of which is the main purpose of the book. The chapter also outlines the approach that will be taken in the book, which is not a contracting out manual, but an analytical tool to facilitate strategic thinking about contracting out.

Keywords: contracting out; decision‐making; failure; Fairfax County; Mambo Graphics; Marks & Spencer; Microsoft; outsourcing; success

Chapter.  4866 words. 

Subjects: Microeconomics

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