OUTSOURCING FAILURES IN SME’S: CASE STUDY APPROACH

Outsourcing, which is a popular business strategy among large companies, is also an attractive option for small entities. However, in order to bring expected results, outsourcing requires knowledge of potential risks and ability of managing them. Even large companies need to face various outsourcing challenges, however, at least they dispose richer resources than small organizations and their success is less dependent on single product delivery. Therefore the aim of the research was to examine the reasons of failure of outsourcing initiatives in SMEs. The authors followed the qualitative approach based on case study method. The obtained results brought contributions in both areas: theoretical as the issue of outsourcing initiatives in SMEs has been analysed to a limited extent; as well as practical because it brought important insight for managers by indicating risks of that they should be aware and properly prepared. The findings indicated the importance of: strategic planning on outsourcing initiative and the development and maintenance of close relations of outsourcing companies with its vendor.