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Aims to provide insight into the decision‐making process which should be utilized in considering outsourcing options. Notes the complex nature of the decision whether or not to outsource, and considers factors such as the theoretical decision structure, a description of the actual process, benefits and disadvantages and the decision criteria. Concludes that the outsourcing and downsizing trend in service organizations will continue and that it is imperative that firms fully consider all relevant factors in coming to a decision.

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