Supply chain outsourcing has become one of the most lucrative and popular trends in the contemporary business world. Firms experience relative cost reductions through economies of scale, flexibility and scalability, better technological expertise and potential to expand business through outsourcing. Global trends such as the unpredictability of the markets and hyper-competitive environments characterised by frequent fluctuations are embedded with risks to outsourcing [1]. In a few instances in literature decision criteria that affect the outsourcing decision are highlighted: for instance, complexity, asset specificity, contestability [2] asset specificity, core competency and sunk cost [3].

Perera, K.H. & Jayaratne, P. (2017). Derivation of a decision model on outsourcing in Sri Lanka using analytic hierarchy process [Extended Abstract]. In T.L. Gunaruwan (Ed.), Proceedings of 2nd International Conference on Research for Transport and Logistics Industry 2017 (pp.105-109). Sri Lanka Society of Transport and Logistics. https://slstl.lk/r4tli-2017/