Author： Vesteinsdottir Ingi Runar Edvardsson; Gudmundur Kristjan Oskarsson; Sigrun
Publisher： Inderscience Publishers
ISSN： 1476-1297
Source： International Journal of Entrepreneurship and Small Business, Vol.14, Iss.3, 2011-10, pp. : 313-333
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Abstract
This paper reports on empirical work recently conducted on outsourcing among 381 service SMEs in Iceland. The study found that the majority of the firms outsourced some service activities, primarily in the local area, and that they did not have a strategic vision for outsourcing. The motives for outsourcing were more related to strategic aspects, such as a focus on core competencies, increased external expertise, and improved customer service, rather than lowering cost. The most common functions to be outsourced are administrative and peripheral tasks, as well as information technology, while very few outsource human resources or lay off staff. The study contributes to the emerging theory of outsourcing within the service sector.
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