Abstract:
Organizations have progressively turned into outsourcing process during the past
two decades in order to enhance operational efficiencies. Improvements in the
production and manufacturing processes are crucial for organizations for the
survival in the competitive marketplace. Outsourcing has been a widespread
business strategy in the global Textile and Apparel Industry. Prior researchers have
studied outsourcing in various contexts. The current study aims to identify the
factors determining the effectiveness of outsourcing in the apparel sector of Sri
Lanka. The research was conducted using a qualitative research method and
employed non-probability convenience sampling to gather data. The primary data
was collected through seven in-depth interviews from senior executives and
managerial level employees of several leading companies in the Sri Lankan Apparel
Industry. The study adopted thematic analysis, and the findings revealed four main
themes: the quality of the product, labour cost, lead time, and responsibility. These
findings can be used as a benchmark to analyse the effectiveness of the current
outsourcing strategy within apparel organizations. Moreover, research findings
provide guidance to practitioners regarding the key components to focus on when
selecting outsourcing parties and managing outsourcing relationships.