Using contracts to perform traditional firm functions

It is a commonplace that similar kinds of activities activities can be organized within firms or between firms, and in the latter situation it is contract law that governs the relationship.  A significant trend over the past twenty years has been the growth in outsourcing—turning to contractual relations to deal with business functions once done within the firm.

A new article from the Wharton Business School explores the process through an examination of IBM, which is trying to reinvent itself as a supplier of outsourcing services to other businesses.