Understanding knowledge re-intergration in back sourcing

Backsourcing is the process where a client firm brings previously outsourced services from a supplier back in-house. Traditionally, the existing literature on backsourcing has focused on how firms reach the decision to bring back previously outsourced services. In this paper, we move beyond focusing on IT backsourcing decision to explore the process of backsourcing from a knowledge perspective. The predominant view in the relevant literature argues that the re-acquisition of knowledge by a client firm during backsourcing takes place similarly to knowledge acquisition by a supplier in a typical outsourcing process. In this paper, we argue that knowledge re-integration in backsourcing occurs differently from outsourcing projects mainly because of the existence of knowledge asymmetries between the client and the supplier. By examining seven backsourcing events, we reveal that knowledge transfer and re-integration in backsourcing emerges as a coordinative activity, complementing knowledge transfer mechanisms reported in the IS outsourcing literature.