Service Outsourcing

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Executive Summary

This paper reviews the Operations Management (OM) research on service outsourcing, a common practice among today's businesses. The authors focus on recent literature in three areas: capacity planning and supplier coordination, service outsourcing under information asymmetry, and quality concerns. Additionally, a mathematical framework is presented that can be used to analyze service outsourcing supply chains. They conclude with discussions on some promising future research areas. Globalization poses challenges to today's businesses. To keep costs down, many business firms have turned to outsourcing.

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