Table 3 presents descriptive statistics of the key variables
used in the selection equation. The average sales efficiency
is 6.67 for outsourcing firms and 7.08 for non-outsourcing
firms, while their cost inefficiency scores are 0.373 and 0.230
respectively. This indicates that outsourcing firms are relatively
less efficient than their counterparts. The other variables
including leverage, sales fluctuation, variability in the
ratio of labor to IT, and IT intensity encompass a wide range
of values (see Table 3). In general, all variables indicate that
outsourcing firms are less efficient, more leveraged, face
more variability, and invest more in IT.