Open Access

David Tumusiime Rwanshane

• Small and Medium Enterprises are facing challenges when it comes to outsourcing. This piece of work investigates the factors that are needed for Small Medium Enterprises (SMEs) in the European Union to attain outsourcing criteria. Some of the challenges in the European Union face include; rising cost, risk uncertainty, large companies’ potency, internationalization and lack of entrepreneurship and innovation. Through understanding and choosing outsourcing criteria, they can select a type of outsourcing in line with their objectives and goals. Therefore, they end up achieving benefits. This could assist them in different sectors across the European Union ease risks. They find solutions to obstacles derived from within the different sectors located in the European Union. This thesis analyses how the SMEs decide on outsourcing criteria challenges and how they can be changed into benefits. The literature findings help in contrasting sectors around the European Union to determine which outsourcing criteria could aid them in achieving resolutions. The complications and objections are due to the following outcomes which include; no loss or gain observation, no specific benefit construction, unexplored innovation strategies, supplier opportunism, outsourcing drivers and cultural fit.