In last few years, outsourcing has moved from "traditional outsourcing" to the next generation called "strategic outsourcing." Using the strategic outsourcing approach, many companies have reaped the benefits of improved performance, increased access to international markets, access to leading edge technologies, enhanced responsiveness to customer needs, increased productivity and efficiency, reduced costs, reduced cycle time, and improved quality of the goods and services in their organizations. Even though many companies have proved outsourcing as a successful initiative, does it mean it is always successful? Absolutely not. In fact as per few research reports, every 1 out of 3 outsourcing initiative fails or as many as 46% of initiatives fail to achieve expected or any results. Considering the number of recent failures of outsourcing initiatives, there is a strong need to assess the total value it provides to the organization as a whole. The aim of this paper is to review the evolution of the theoretical framework and to determine the need for considering the "total value addition" approach for outsourcing initiative.
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