Purpose Against the recent trend toward reversed global outsourcing, the purpose of this paper is to provide insights on how the internal process can be handled once the decision on reverse outsourcing has been made. The authors focus in particular on in-house knowledge and technology requirements. Design/methodology/approach To explore the topic at hand, the researchers conducted in-depth semi-structured interviews with five companies operating in two different industry sectors. Findings Reversed outsourcing accentuates challenges relating to retained knowledge. When embarking on reversed outsourcing, companies need to acknowledge the effort to revive and renew capabilities in order to perform technical operations and advanced manufacturing production. Research limitations/implications The research is based on case studies in a Scandinavian context. Further empirical research from other high-cost locations is needed to validate the findings. Originality/value Explorative qualitative research is scarce in the emergent literature on reversed outsourcing. The paper provides practical and theoretical insights into how to handle diminishing knowledge in companies that are re-evaluating their sourcing strategies. It adds a knowledge dimension within the emergent literature. A framework for key success factors and propositions is also provided.

This paper focuses on a relatively new sourcing strategy referred to as backsourcing, where we emphasize the importance of knowledge reintegration and how it can be managed. Our reference for this approach is built upon Knowledge Management theory and contribution from different academics that have discussed and highlighted the reversal of global manufacturing strategies. This is illustrated through an interview study with three members within the maritime industry at a high-cost location, which have already embraced a backsourcing strategy, or are preparing to embark on one. Findings in this paper contribute toward providing strategic choices that should be considered when reintegrating globally fragmented knowledge.