Sourcing Decision as a Strategic Decision in Organizations: A Literature Review-Based Research

Abstract

Organizations are increasingly dependent on their Information technology (IT) infrastructure to drive internal operational efficiencies and deliver enhanced customer experience externally. In todays’ world, information technology acts as a backbone for most of the business organization, both in domestic and multinational corporations. IT components include hardware, software, data, processes and people. People are integral part of information technology management and are typically involved in the operations and management of IT components. Sourcing decision of an organization deals can with staffing and/or procurement of raw materials. Sourcing strategy can be global or domestic within the country of the organization. Our article is aimed at studying various human resources sourcing strategies in organizations such as outsourcing, offshoring, near shoring, reshoring, insourcing and how it is increasingly becoming more strategic decision in nature with its impact on organizational performance of meeting their strategic objectives. We adopted a narrative literature review method to research on existing literature on the topic and develop a conceptual base for future research. We find that sourcing decision is integral to an organization achieving its strategic objectives, thereby considered one of the strategic decisions in today’s competitive and dynamic operating environment of organizations.