Understanding Information Systems Backsourcing

Backsourcing is the process where a client firm brings previously outsourced services from a supplier back in-house. Traditionally, the existing literature on backsourcing has focused on how firms reach the decision to bring back previously outsourced services. In this book, I move beyond focusing on IT backsourcing decision to explore the process of backsourcing from a knowledge perspective. The predominant view in the relevant literature argues that the re-acquisition of knowledge by a client firm during backsourcing takes place similarly to knowledge acquisition by a supplier in a typical outsourcing process. In this book, I show that knowledge re-integration in backsourcing occurs differently from outsourcing projects mainly because of the existence of knowledge asymmetries between the client and the supplier. By examining seven backsourcing events, I reveal that knowledge transfer and re-integration in backsourcing emerges as a coordinative activity, complementing knowledge transfer mechanisms reported in the IS outsourcing literature.