Breaking the outsourcing path: Backsourcing process and outsourcing lock-in

The objective of this paper is to develop research on backsourcing, which consists in recalling outsourced activities back in-house. We focus on the processes that firms follow to backsource these activities, particularly when they are locked into outsourcing. We refer to path dependence and path creation concepts to conduct this research. Using a case study methodology, we analyze the process related to the backsourcing of information technology activities in a telecommunications company. This paper highlights the negative effects of the need to control outsourced activities as it maintains outsourcing lock-in. Organizational crises and the perception of backsourcing as a success are two elements that enable significant mindful deviations from outsourcing practices and the development of a backsourcing path. The decision to backsource and its implementation can be facilitated by past successful integration experiences, internal productive capabilities, and capabilities to control activities. Changes in power relations within the firm can sustain the development of a backsourcing path. Our research contributes to research on organizational path breaking by studying the backsourcing process as an outsourcing path breaker. This paper complements studies on organizational practices such as outsourcing and backsourcing and their interplay.