Chapter 3 Introduction
In this chapter, we discuss some of the most relevant business theory and theoretical concepts relating to relationship-based procurement choices.
Figure 7 outlines the subsections for this discussion. We begin with a business justification for outsourcing because the make-or-buy choice is an important strategic decision. This is followed by some fundamentals on governance, because that aspect determines how the RMP approach will operate. We also discuss some relevant issues surrounding globalization and general complexity faced by POs.
The Business Justification for Outsourcing
The rationale for infrastructure projects is to deliver a particular set of facilities that in turn generate ...