A Decision Making Framework for Strategic Outsourcing

Nowadays one of the most important decisions for the companies is whether to outsource a part of the organizations’ value chain or not. Some studies show that majority of them, consider outsourcing as a cost reduction approach, not as a strategic decision. Some researches have paid attention to this concept. This paper presents a decision making framework which consists of five criteria, thirty scenarios and eight strategies. According to this framework, activities outsourcing decisions can be made. This framework has been applied for thirty three manufacturing sets of Samand automotive. The suggested option for twenty six of them is “Supplier Development and Outsourcing”, for five sets is “Insourcing”. “Partial Outsourcing” is suggested for one set and “Spin off” for another one