Strategic Maneuvers for Outsourcing Flexibility: An Empirical Assessment

Tan and Sia (2006) conceptualize outsourcing flexibility within a set of four dimensions: robustness, modifiability, new capability, and ease of exit, and propose a portfolio of preemptive, protective, exploitive, and corrective maneuvers to manage flexibility in outsourcing. In this article, we build upon their proposed framework by anchoring the strategic maneuvers through a multitheoretic lens and empirically validate the research propositions. A survey of 171 outsourcing projects in Singapore was conducted. The findings bear evidence that the four proposed dimensions of outsourcing flexibility are conceptually distinct and that different strategic maneuvers contribute differently to the various flexibility dimensions. The empirical findings also affirm the importance of structuring flexibility for outsourcing success, with some flexibility dimensions manifesting different intensity in enabling outsourcing success for IT outsourcing versus business process outsourcing. We conclude by proposing a more holistic approach for effective flexibility management in outsourcing and highlighting research gaps that may need deeper theorizing and empirical extension.