Arbeitspapier

Outsourcing and Firm-level Performance

Using firm-level panel data from the German cost structure survey over the period 1992 to 2000, our empirical analysis shows that firms that increased material inputs relative to internal labor costs performed better in terms of gross operating surplus than other firms. However, firms that increased external services relative to internal labor costs, thus outsourcing service functions previously provided within the firm, performed worse. In sum, our findings support the view that firms tend to overestimate the benefits accruing from outsourcing of services previously provided internally.

Language
Englisch

Bibliographic citation
Series: DIW Discussion Papers ; No. 309

Classification
Wirtschaft
Industry Studies: Manufacturing: General
Organization of Production
Firm Organization and Market Structure
Subject
Outsourcing
Firm Performance
Business Service Sector
Outsourcing
Unternehmensentwicklung
Rentabilität
Kostenstruktur
Unternehmensdienstleistung
Schätzung
Deutschland

Event
Geistige Schöpfung
(who)
Görzig, Bernd
Stephan, Andreas
Event
Veröffentlichung
(who)
Deutsches Institut für Wirtschaftsforschung (DIW)
(where)
Berlin
(when)
2002

Handle
Last update
10.03.2025, 11:45 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Görzig, Bernd
  • Stephan, Andreas
  • Deutsches Institut für Wirtschaftsforschung (DIW)

Time of origin

  • 2002

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