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The Use of Total Cost of Ownership Concepts to Model the Outsourcing Decision

Lisa M. Ellram (Arizona State University)
Arnold B. Maltz (New Mexico State University)

The International Journal of Logistics Management

ISSN: 0957-4093

Article publication date: 1 July 1995

4077

Abstract

The outsourcing decision considers the issue of whether an organization should perform certain activities internally or purchase these services from third parties. One of the key issues in outsourcing is the potential for cost reduction. This paper suggests the use of total cost of ownership (TCO) analysis as an excellent approach for understanding the true cost implications of the outsourcing decision, rather than focusing on price.

Keywords

Citation

Ellram, L.M. and Maltz, A.B. (1995), "The Use of Total Cost of Ownership Concepts to Model the Outsourcing Decision", The International Journal of Logistics Management, Vol. 6 No. 2, pp. 55-66. https://doi.org/10.1108/09574099510805341

Publisher

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MCB UP Ltd

Copyright © 1995, MCB UP Limited

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