PACIS 2020 Proceedings


Research examining the impact of outsourcing on firm performance is largely focused on discrete client-vendor dyads. As firms increasingly engage with multiple vendors simultaneously, the benefits of such outsourcing could be amplified or attenuated based on the firm’s ability to effectively coordinate across the vendors in its outsourcing portfolio. This study examines the impact of the outsourcing portfolio configuration on firm performance. Using a sample of 178 client outsourcing portfolios across 59 clients, spanning the years 2000-2013, the study finds that the portfolio configuration, based on the attributes of its size, diversity and functional heterogeneity, to have a curvilinear relationship on the firm’s performance.



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