Abstract
M.B.A.
Outsourcing is fast becoming a fixture in the organizational models of the 21st century. At
first confined to nonstrategic business activities such as cleaning, security or legal
services, outsourcing now encompasses functions that are closer to the core. As suppliers
become more tightly integrated into the fabric of a company's basic business operations,
the risks attending these failures escalate. In fact, as Booz Allen Hamilton (2001) state,
the very viability ofthe company can be threatened.
To many companies, logistics outsourcing has become an attractive option in order to
take advantage of various opportunities, and to focus on the core activities of the
company. It is perceived that South African businesses are adopting the same principles
that many European countries, the United States of America and other mainly first world
countries have, in embarking on outsourcing.
The purpose of this dissertation therefore is to determine the status of outsourcing in
South Africa. This research gives insight into the reasons why some companies have
embarked on outsourcing. The research also attempts to present a theoretical framework
for the outsourcing of logistics as a guideline. Another feature of this research is the
identification of the criteria that companies apply in the selection of an outsource service
provider.
The methodology employed in this research was empirical research, which entailed a
qualitative study. A process of non-probability sampling was applied. Questionnaires
were distributed to the decision makers in industry with the focus on senior managers in
order to obtain the data required for the analysis and interpretation. A thorough review of
applicable literature was also undertaken...