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Companies of today act on a global competitive market. This dynamic business environment requires operational efficiency and capabilities to produce and develop products and services required by the market at the necessary rate of change. To achieve this many companies focus on core competencies, moving the rest to external suppliers. The trend has therefore turned from producing internally to buying from external suppliers. The objective in this paper is to identify critical parameters, which affects (or are affected) by the make or buy decision, based on the two case studies. This paper is based upon a literature overview and two case studies conducted at Volvo and ABB in Sweden. Both companies have out-sourced different components. Some of the parameters found in the case studies are; competitive priorities, resources, the logistic cost, core competencies, the feed-back loop and long time survival. The case study shows that not all outsourcing cases were such a success as expected, indicating the need for a "Rightsourcing model".