**Author details**

*Outsourcing and Offshoring*

**7. Conclusion**

partners, trust, commitment, and long-term orientation are the key elements in maintaining a buyer–supplier relationship. Literature has witnessed a relationship characterized by such aforementioned traits not only help to better serve the customer but also intensifies mutual benefits. Investigation of relevant antecedents pertaining to trust, commitment, and long-term orientation have seldom been used

Outsourcing has been one of the noticeable business practices in view of its demonstrated capability in accomplishing competitive advantage to the organization. With the developing fame of outsourcing in the manufacturing and service sectors, mining sector have also started capitalizing the conceivable outcomes of outsourcing. Outsourcing has now turned into a key device for mining industries for building up corporate capability through its viable and effective methods of value improvement. In view of this business prospect, the coal mining organization of India has started outsourcing its operational activities to meet the escalating demand of coal across the country. However, along with several success stories, there are quite a few pieces of evidence that portray several difficulties encountered by the organization. Accordingly, to accomplish any firm's business goals, it is

in light of an on-going outsourcing relationship and are areas of concern.

prudent to consider it as a key aspect of corporate decision choices.

coal mining organization in India.

The present study provides a general introduction about outsourcing

followed by its potential benefits and the shortcomings as witnessed in the existing literature. Besides giving an overview, the study provides a backdrop of the Indian outsourcing scenario considering the coal mining organization and outsourced activities by manufacturing and service industries in general. The study then discusses the significant contribution of the coal mining organization in reference to the growing importance of coal in the country. Subsequently, the relevance of outsourcing in view of the improved organizational performances for the Indian coal mining organization has been elucidated. Finally, the chapter ends with proposing an outsourcing decision model that may provide a comprehensive approach towards evaluating the appropriateness of such strategic decision as outsourcing in consistent with the organizational strategy for performance improvement for the

The present study contributes in understanding a practical problem of a coal mining industry that may act as a guiding instrument to the mining managers in terms of decision making related to strategic sourcing. Developing an outsourcing decision support may assist the managers of the coal mining organization to determine the candidates for outsourcing, thus identifying the set of core activities that needs to be nurtured and protected for organizational excellence. The study provides elementary guidance to the management in investigating the appropriateness of outsourcing with the organizational performance through identification of key drivers. Further an effective outsourcing decision support tool may help managers to decide upon the optimal sourcing strategy among insourcing, outsourcing, and strategic alliance (partnership) for the organization's operational activities. While the Indian coal mining organization is reliant on third party service providers for identification and exploration of new coal reserves, investigation of relevant antecedents pertaining to trust, commitment, and long-term orientation may facilitate management as client firm to develop and improve outsourcing relationship with the service providers. Determining the impact of the aforementioned factors may also help the mining executives to formulate relevant policies accordingly. However,

there are few limitations of the present study. First, the study deals with the

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Mousumi Modak1 \*, Khanindra Pathak<sup>2</sup> and Kunal Kanti Ghosh<sup>2</sup>

1 Indian Institute of Technology, Roorkee, India

2 Indian Institute of Technology, Kharagpur, India

\*Address all correspondence to: mousumimodakiitr@gmail.com

© 2021 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/ by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
