Service Outsourcing and Procurement in Service Supply Chain： Perspective of Service Buyers

Along with increasing servitization of business, more and more companies today are shifting from selling only products to suffering integrated and customized products and services that deliver value in use. This change reflects, on one hand, the changing strategies of suppliers and their efforts to stay competitive in the market; on the other hand, it also reflects a change in the attitude of their customers to incorporate service procurement in their business, apart from the traditional goods-approach procurement. This change requires customers to have a systematic framework to handle their relationship with suppliers, and to have a clear picture of the services they need. In this chapter, we will explore, from the perspectives of service buyers, the determining factors behind service procurement and the level of outsourcing. We will also walk through the different forms of service procurement and outsourcing.

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