“Backsourcing”

In his recent story in the North West Indiana Times, Keith Benman mentions the phenomena of "backsourcing” (earliest scholarly citation I could find Hirschheim, R. and M. Lacity. "Backsourcing: An Emerging Trend," Journal of Strategic Outsourcing Information, 45, 1998, pp. 78-89, Jeff Kaplan has a nice article too) where outsourcers become dissatisfied with outsourcing results and "backsource" the activity. The story mentions examples from IBM and JP Morgan and Sears with Computer Science Corporation.

The "backsourcing" phenomena seemed really interesting and using relationship marketing jargon it seems like a "marriage" going back and forth fairly amicably (?).My quick research revealed that the genesis of the "backsourcing" of the IBM JP Morgan $ 5 billion (yes billion) deal is linked to the merger of Bank One and JP Morgan.  Apparently, doing strategic stuff in-house became more important so the employees who had transferred to IBM (the provider) got transferred back (To JP Morgan/Bank One).

The Sears reference in the Benman story seems unclear , Sears refers to building a relationship with Computer Sciences Corporation rather than "backsourcing" stuff.

In any case, thanks to the authors cited above for giving a great point for discussion in my MBA Class.

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