The existing outsourcing literature has generally overlooked the cost differential and contract negotiations between … presence of <i>competition</i> and <i>negotiations</i>. In other words, does low cost outsourcing always lead to a win … supplier. We show that, under both structures, low cost outsourcing may lead to a win-lose outcome in which the suppliers gain …

outsourcing, and whether firms choose to build or buy software. Instrumental variables and corroborating regressions suggest that …