Make or buy decisions: perception gap analysis

The make-or-buy question represents one of the key issues to have emerged in manufacturing strategy. The paper addresses the perspectives of the make-or-buy decision or outsourcing option and the impact of outsourcing on a firm's competency. The paper provides a theoretical framework based on the perception gap between the organisation willing to outsource some of its activities (customer) and the outsourcing provider. The framework can support the decision-making to outsource from the perspective of both the customer and outsourcing provider