Outsourcing in general is widely used by firms in order to enhance their performance and agility, and to cut costs related to their operations. Almost two decades ago, [9] Bettis et al. (1992) presented arguments both for and against outsourcing, concluding that, "properly understood and managed as an overall part of strategy, outsourcing can aid competitiveness". Aertsen assessed the benefits of outsourcing the physical distribution function in 1993 ([1] Aertsen, 1993), and [13] D'Aveni and Ravenscraft (1994) argue that outsourcing companies often achieve cost advantages relative to vertically integrated firms. A sharper focus on core competences is another benefit commonly combined with outsourcing ([13] D'Aveni and Ravenscraft, 1994; [15] Gilley and Rasheed, 2000). [22] Kotabe and Mol (2009) studied the relationship between outsourcing and financial performance, concluding that there was an optimal level of outsourcing and that deviations would be costly. Outsourcing has also many disadvantages, including deterioration in overall performance due to excess reliance on outside suppliers ([9] Bettis et al. , 1992) and the lower innovation capability of the outsourcer ([15] Gilley and Rasheed, 2000).