Balancing Transaction Costs and Flexibility in Outsourcing for Optimal Performance
Companies need to balance transaction costs and flexibility when outsourcing to meet customer demands. Transaction costs, like fees and taxes, can be high, but companies must find the right level of flexibility to optimize performance. By reviewing existing literature, it is clear that finding the equilibrium point between transaction costs and flexibility is crucial for success in outsourcing. This balance allows companies to handle uncertainties in the market and meet their needs effectively.